After 6 Consecutive Upper Circuits This Retail Stock Announced Allotment of 1.55 Cr Convertible Warrants

Bhatia Communications & Retail (India) Limited, a prominent player in the retail and wholesale distribution of mobile devices and electronic products, has made a significant announcement. The company's board of directors has approved the allotment of 1.55 crore convertible warrants, each priced at Rs 23.75, on a preferential basis. These warrants, convertible into equity shares, will be allocated to the promoter group and selected non-promoter allottees.

In an exchange filing on Wednesday, the company confirmed the receipt of 25% of the issue price, amounting to Rs 5.9375 per warrant. This upfront payment totals Rs 9.2 crore for the 1.55 crore convertible warrants. Each warrant is convertible into one fully paid-up equity share with a face value of Rs 1. The conversion can be exercised within 18 months from the date of allotment, contingent on the allottees paying the remaining 75% of the issue price, which amounts to Rs 17.8125 per warrant.

The company's stock has been performing strongly, reaching its sixth consecutive upper circuit. On Wednesday, Bhatia Communications & Retail shares climbed 5% to Rs 29.51, up from the previous day's close of Rs 28.11. Over the past year, the stock has ranged between a high of Rs 38.90 and a low of Rs 17.35.

Bhatia Communications & Retail reported an 11.62% rise in net sales for the first quarter of FY25, with revenue increasing to Rs 104.82 crore, compared to Rs 93.91 crore in the previous quarter (Q4FY24). Net profit for Q1FY25 rose by 22.5%, amounting to Rs 3.65 crore, up from Rs 2.98 crore in Q4FY24.

The company's annual financial performance for FY24 was also notable. Net sales increased by 31.3% year-on-year to Rs 413.79 crore, and net profit grew by 20.8% to Rs 11.52 crore. These figures highlight the company's sustained growth and market presence.

Bhatia Communications & Retail has declared a final dividend of Rs 0.01 per equity share (1%), as approved by shareholders at the company's Annual General Meeting on September 6, 2024. The dividend will be distributed to eligible shareholders by the timeline prescribed under the Companies Act, 2013, with a record date set for Tuesday, September 24, 2024. Shareholders whose shares are recorded by the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) by this date will receive the dividend.

Bhatia Communications & Retail (India) Limited is a key player in India's retail sector, specializing in the distribution of mobile devices, accessories, home appliances, and other electronic products. The company has established strong relationships with leading brands like Apple, Samsung, OnePlus, Vivo, Oppo, Realme, Xiaomi, and many more. With a network of 172 stores across India, including 160 owned outlets and 12 franchise locations, Bhatia Communications has a substantial presence in the Indian market.

The company continues to expand its footprint, with an average capital expenditure of Rs 8 to Rs 10 lakh per store, underscoring its commitment to growth and innovation in the retail industry.