Upper Circuit Penny Stock In Focus On Rs. 36.20 Cr Fundraising For Business Growth

Bhatia Communication & Retail (India) Ltd is a small-cap company with a market cap of Rs 315 Cr in the speciality retail sector of India. The stock ended at a 5% upper circuit limit at Rs 25.13 apiece on Friday indicating investors' interest in the stock. However, what made it the stock to be in focus is on 20th July the Board of Directors approved a fundraising deal of Rs 36.20 Cr for business growth and long-term financial resources of Bhatia Communication & Retail (India).

The Board of Directors of the company in their meeting held on Saturday, 20th July, 2024 has considered and approved "To accelerate business growth further and to augment the long-term financial resources of the Company through raising of funds, aggregating amount of up to Rs. 36,20,80,000/- (Rupees Thirty Six Crores Twenty lakhs and Eighty Thousand Only), by way of creating, issuing and allotting up to 1,55,00,000 (One Crore and Fifty Five Lakhs only) warrants convertible into Equity Shares having face value of Re. 1/- each, to the persons belonging to 'Promoter group and Public Category'," said the company in a stock exchange filing.

The names of the proposed allottees in case of issue of warrants convertible into equity shares to the Promoter and Public Category, to be allotted on preferential basis are Hema Sanjeev Bhatia (Promoter Group), Garima Nikhil Bhatia (Promoter Group), Forbes EMF (Public FPI), Ebisu Global Opportunities Fund Limited (Public FPI), Pankajkumar Kishorkumar Ahuja (Public Individual), Rahul Rajkumar Chawla (Public Individual).

The warrants convertible into equity shares carry a right to subscribe to 1 (one) equity share per warrant on making full payment within period of 18 months. The issue price has been fixed at Rs. 23.36/- per warrant to be converted into one equity share.

According to the Board of Directors of Bhatia Communication & Retail (India) Ltd, the preferential issue will be undertaken for cash consideration. An amount equivalent to 25% of the warrant issue price shall be payable at the time of subscription and allotment of each warrant and the balance 75% shall be payable by the warrant holder(s) on the exercise of warrant(s).

A well-known multi-brand retailer of consumer durables, electronics, and electrical appliances with a broad product line is Bhatia Communications & Retail (India) Limited. The company has a stronghold in South and Central Gujarat as well as other nearby regions. Under the brands of Bhatia Communication, "Bhatia Mobile - The One Stop Shop," "Only Mobile," and "Mobile Station," the company runs a network of multi-brand outlets (MBOs) and oversees the management of exclusive brand outlets (EBOs) for various businesses. The firm began selling mobile devices in 1996. It was formed in 2008 with one store, and as of FY24, it has 203 outlets (193 owned and 10 franchised).