Agro-based products and edible oil company BCL Industries on Thursday announced that its board has approved a proposal to issue 55.8 lakh fully convertible warrants worth Rs 201 crore to promoters and public shareholders.

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The decision was taken in the company's board meeting held on January 12.

The company will issue and allot up to 55.83 lakh fully convertible warrants of a face value of Rs 10 each, carrying a right exercisable by the warrant holder to subscribe to one equity share per warrant, at an issue price of Rs 360 per warrant for an aggregate amount of Rs 201 crore.

The fully convertible warrants will be issued to persons belonging to ‘Promoter and Promoter Group’ and ‘Non-Promoter, Public Category’ on a preferential basis.

Under SEBI rules, a registered external credit rating agency would be appointed as a monitoring agency to monitor the use of proceeds of the preferential issue.

Also, BCL Industries' board approved a proposal to increase the authorised share capital of the company from Rs 25 crore to Rs 35 crore. In addition, the company's board has decided to call an extraordinary general meeting on February 9 to seek members' approval as well as constitute a fundraising committee for taking necessary decisions.

BCL Industries was also part of CNBC-TV18's dealing room chatter earlier this week where sources said that an influential HNI may buy stake in the company through this issue.

BCL Industries is an agro-based edible oil company with a processing capacity of 1,020 MT per day. The company reported revenue of Rs 833.3 crore during the first six months of the current financial year with an EBITDA margin of 4.8 percent.

A majority or 73 percent of the company's revenue comes from the edible oil and vanaspati segment, while 26 percent comes from distilleries. The remaining 1 percent comes from real estate.

BCL Industries stock has gained over 33 percent in the past week and 28 percent in the past three-month period.

Shares of BCL Industries are trading 1.1 percent higher at Rs 414.10.

(Edited by : Rukmani Krishna)