B.A.G Films and Media Limited has informed the Exchange regarding 'Intimation of receipt of In-Principle approval from Stock Exchanges'.
BAGFILMS · price
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B.A.G Films and Media Limited has received in-principle approval from both BSE and NSE to issue 2 crore (2,00,00,000) warrants convertible into an equal number of equity shares to members of the promoter group on a preferential basis. Each warrant is convertible into one equity share of Rs. 2 face value at a price not less than Rs. 8.25 per share. This means the company could raise up to approximately Rs. 16.5 crore from the promoters if all warrants are exercised. The approval is subject to compliance with SEBI ICDR regulations and post-issue listing formalities.
This is a positive signal as it shows the promoter group is willing to invest additional capital into the company, indicating confidence in its future. However, existing shareholders should note potential dilution once the warrants are converted into equity shares. The preferential allotment price of Rs. 8.25 will also serve as a near-term benchmark for the stock.