Realty Stock Raises Rs 2.42 Cr Via Warrant Conversion After 10:1 Stock Split; What You Need To Know?

In order to raise Rs 2.42 Cr, the real estate company Hazoor Multi Projects notified stock markets on Tuesday, March 25, 2025, about the conversion of warrants, which resulted in the allocation of 10.77 lakh new equity shares to non-promoters. The action results in a growth in equity capital after warrant conversion. Following the discussion of warrants and equity share allocation, the company's issued and paid-up capital has grown to Rs. 22,29,75,410, which is made up of 22,29,75,410/-equity shares of Re. 1/-each.

"We wish to inform you that the fund-raising committee of the Company in their meeting held today i.e. Tuesday, March 25, 2025, inter-alia, considered and approved the allotment of 10,77,000 equity shares having face value of Re. 1/- each at an issue price of Rs. 30/- each (including a premium of Rs. 29/- each), consequent upon the conversion of 1,07,700 Warrants issued at an Issue Price of Rs. 300/-each, after adjusting the number of shares, paid-up capital per share and premium per share post sub-division of nominal value of the Equity Share of the Company from 1 Equity Share of Rs. 10/- each to 10 Equity Shares of Re. 1/- each, to the following persons belonging to the "Non-Promoters/Public Category", on preferential basis, upon receipt of balance amount aggregating to Rs.2,42,32,500/- at the rate of Rs. 225/- (Rupees Two Crores forty-two Lakhs Thirty-Two Thousand Five Hundred Only) per warrant," said Hazoor Multi Projects in a stock exchange filing on Tuesday.

Number of warrants and equity shares granted upon warrant conversion, taking into account the impact of subdivision on the company's equity shares' nominal value or post sub-division of nominal value of the equity share of the company from 1 equity share of Rs. 10/- each to 10 equity shares of Re. 1/- each.

With the approval of the members, these warrants were issued to the NonPromoters/Public Category on a preferential basis at an issue price of Rs. 300/-per warrant. The warrant holders are entitled to convert their warrants into an equal number of equity shares of the company by paying the remaining 75%, or Rs. 225/-, within 18 months of the warrant allotment date, according to Hazoor Multi Projects. All warrant holders are eligible to receive 10 shares upon conversion of each warrant they have subscribed for following the stock split effective July 11, 2024. As a result, 10,77,000 equity shares at a rate of Rs. 225 per warrant have been issued upon receipt of the remaining sum.

The company, like others in the field, has made a habit of providing steady results judging by the last quarterly and yearly results. The quarterly and annual results indicate a growth performance, with the company having Q3FY25 net sales reported at Rs 164.87 crore along with Rs 2.72 crore net profit. As of 9MFY25, the net sales account was Rs 391.21 crore and the net profit stood at 23.20 crore. On an FY24 basis, net sales reported by the company were at 545 crore which was accompanied by a net profit of 64 crore.

The Company marked advancements in the infrastructure industry after clinching two contracts with the National Highways Authority of India (NHAI). The first contract is for the collection of user fees and maintenance of toilets at Bijora Toll Plaza in Maharashtra. This plaza is part of the Waranga to Mahagaon NH 361 four-lane expansion project and is estimated to cost Rs. 7.91 Crore. The second contract is for the collection of user fees at Hulikunte Fee Plaza on NH 648, Dobaspet Dodaballapur Bypass in Karnataka. This project which is of Rs. 67.16 Crore scope also includes maintenance of toilets along the 42-kilometre four-lane bypass.

There has been an upsurge in interest towards Hazoor Multi Projects Ltd from institutional investors in December 2024 as evidenced by the Foreign Institutional Investors (FIIs) stake increasing to 19.94% which happened to be October 2024. The new entrant came in the form of the President of India, who now owns 18,15,000 shares or 0.91% of the equity of the company. This is a sign of increasing interest towards the firm which is strong performing business and has excellent scope for advancement and expansion.

Additionally, in its recent general meeting, which took place on December 22, 2020, the company's shareholders approved a 10:1 stock split, making it ten times easier for new ADTV. Calling it a stock split would be an understatement, as the ratio chaos rubs off on companies already holding an ADTV above 1+ million, with prospects valuing around that much at present.

Shareholders of Hazoor Multi Projects broadened their base and scope, enabling the company's forward multiple and share split approval to instill great confidence among existing shareholders and potential new investors.

Moving forward strategically, Hazoor Multi Projects Limited has provisionally green-lighted the merger of two of its ventures, the Square Port Shipyard Private Limited. The merger intends to achieve a chain integration effect in the combined entities by leveraging operational efficiencies and resources at both organisations. The full steps of the merger will be undertaken by a Specific Transaction Committee, which will communicate with agents/ intermediaries and obtain requisite approvals from shareholders, debt holders, stock exchanges, SEBI, NCLT and other authorities.

Updating growth opportunities, our company has also achieved two contracts from the National Highways Authority of India (NHAI) Further, Hazoor Multi Projects has bagged a Rs 2.59 crore contract for suggesting measures for user fee collection for national highway feeder roads widening project at NH-218, Bijapur Hubli section in Karnataka with works expected to be completed within 3 months. The latter is a broader scope project worth Rs 17.94 crores on Bogalur toll plaza at NH-9 in Tamil Nadu to manage the collection of user fees, maintain the toilet facilities and sell consumables with projections to implement within a year. These contracts are consistent with the strategic position of the company which emphasizes infrastructure and operational excellence in the highway sub-sector.

The solid financial performance of Hazoor continues as observed from the company's Q1FY25 when it registered net sales of Rs 70.26 crore and a net profit of Rs 9.46. The 12-month results at the end of FY24 also show consistent progression with total net sales amounting to Rs 545 crore and a net profit of Rs 63.77 crore. This impressive performance has created an institutional appetite as noted in September 2024 when Foreign Institutional Investors increased their ownership (FII) from 19.18 per cent in June 2024 to 19.63 per cent by purchasing 84,855 shares.

Established in 1992, Hazoor Multi Projects Ltd. has been involved in residential construction before later moving towards large-scale infrastructure development. The company has a major role in national highways as it collaborates with government bodies like the Maharashtra State Road Development Corporation and the NHAI. Hazoor has also broadened its horizon as it has made in-roads in the EPC (Engineering, Procurement and Construction) segment which is helping build the infrastructure of India.