Metal Stock Okays Allotment of 2.50 Cr Warrants After 1:1 Bonus Shares In Q2

During Friday's closing session, JTL Industries Ltd., a small-cap metal firm, registered a market cap of Rs 4,598.56 Cr. Market observers are abuzz about JTL Industries after the company announced that 2.50 Cr warrants will be allotted on a preferential basis, in addition to its impressive Q3 performance.

"Pursuant to the members' approval obtained through postal ballot on January 18, 2024 by means of passing a Special Resolution and 'In-Principal Approval' obtained from the Stock Exchanges i.e. BSE Limited, National Stock Exchange of India Limited and Metropolitan Stock Exchange of India Limited, we wish to inform you that the Securities Issue and Allotment Committee of the Company in their meeting held on today i.e. Friday, February 02, 2024, considered and approved the allotment of 2,50,00,000 (Two Crore and Fifty Lakhs Only) fully Convertible Warrants ('Warrants'), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share per Warrant, to persons belonging to "Promoter/ Promoter Group" and "Non-Promoter/Public Category" on preferential basis at an issue price of Rs. 270/- per Warrant, after receipt of stipulated amount i.e. 25% of the Issue Price as subscription amount," said JTL Industries in a stock exchange filing on Friday.

"Each of the Warrant, so allotted, is convertible into or exchangeable for one fully paid-up equity share having a face value of Rs. 2/- (Rupees Two only) of the Company in accordance with the provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, on payment of the balance consideration i.e. 75% of the Warrant Issue Price from the Allottees within 18 months from the date of allotment of these warrants," stated JTL Industries in a BSE filing.

It was also noted that, subject to a deviation of +/- 10% based on future events, each subhead in the issue's objectives will have its value adjusted in proportion to the issue's overall proceeds. These warrants, which were awarded on a preferential basis, will be locked in for a specified period of time.

The above issue of warrants by JTL Industries came after the company declared 1:1 bonus shares in Q2FY24 for the purpose of which 7th September 2023 was the record date.

In the quarter ending December 31, 2023, JTL Industries Ltd recorded a 47.22 per cent rise in consolidated net profit on a year-on-year (YoY) basis, coming in at Rs 30.18 crore as opposed to Rs 20.5 crore during the same period the previous year.

In the third quarter of the current financial year, its consolidated revenue from operations climbed by 65.26 per cent YoY to Rs 567.39 crore, from Rs 343.33 crore during the same period the previous year. EBITDA climbed 46.35 per cent year on year to Rs 42.51 crore in Q3FY24 from Rs 29.04 crore in Q3FY23.