JTL Industries Shares Jumps 5% On Conversion of Warrants Into Shares

JTL Industries' shares opened at Rs 226.80 on Thursday and went up 5.33% to an intraday high of Rs 238.90 on the NSE. The spike in the value of the company's stock followed the Securities Issue and Allotment Committee consideration and approval of the issuance of 2,40,300 fully paid equity shares with a face value of Rs. 2/-per share, as a result of warrant conversion, at its meeting on December 20, 2023.

"This is to inform that the Securities Issue and Allotment Committee of the Company, in its meeting held today i.e. 20.12.2023, inter alia, has considered and approved the allotment of 2,40,300 fully paid equity shares of face value of Rs. 2/- each, pursuant to conversion of warrants into said equal number of equity shares," said JTL Industries in a stock exchange filing.

Under the preferential issue, the investors who take part as the non-promoter category of the company are M/s. Srestha Finvest Limited who has been allotted 1,00,000 lakh shares followed by Ms. Kiran Garg with 50,000, Mr. Sunil Gupta with 25,000, Mr. Abhinav Gupta and M/s. Algoquant Fintech Limited with 20,000, Mr. Maninder Singh with 17,000 and Mr. Vijay Kumar M Mittal with 8.300 shares allocated,

"Post conversion of warrants, the allottees are also entitled for 2,40,300 number of bonus shares reserved for outstanding convertible warrants in the ratio of 1:1 and accordingly 2,40,300 bonus Equity Shares are also been allotted on 2,40,300 Equity Shares post conversion of warrants.

Consequently, w.e.f. 20.12.2023, the Issued, Subscribed and Paid-up Equity Share Capital of the Company stands increased to Rs. 34,22,27,440 consisting of 17,11,13,720 Equity Shares of Rs. 2/- each. The aforementioned shares rank pari-passu with the existing Equity Shares of the Company," said JTL Industries in a stock exchange filing.

The corporation recently announced its plan to expand its massive capacity in Maharashtra to the stock exchanges of India. With a significant capital expenditure, the company declared its strategic decision to launch a massive capacity expansion project in Maharashtra through its subsidiary, JTL Tubes Limited.

JTL Industries plans to raise a total of Rs 13,100 Mn through a variety of methods, including qualified institutional placement (QIP), in order to enable the execution of this massive project. The promoter and promoter group will invest a significant amount of this capital, Rs 5,400 Mn, with the public, non-promoter group contributing an additional Rs 2,700 Mn. Through QIP, the remaining Rs 5,000 Mn would be acquired.