Balrampur Chini Mills Limited has informed the Exchange regarding intimation of receipt of In-Principle approval for Preferential Issue under Regulation 28(1) of SEBI (Listing Obligations ....
BALRAMCHIN · price
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Balrampur Chini Mills Limited has received in-principle approval from both NSE and BSE for issuing up to 93,16,771 equity shares of face value Rs. 1 each on a preferential basis. The shares will be issued at Rs. 483 per share, including a premium of Rs. 482 per share. This translates to a total fundraising of approximately Rs. 450 crore. The company must submit a listing application within 20 days from the date of allotment and ensure allottees do not trade in the scrip till allotment is complete. Both exchanges have advised the company to strengthen internal controls to monitor allottees' trades to avoid regulatory non-compliance.
This preferential allotment will result in equity dilution for existing shareholders. The company gains access to Rs. 450 crore of capital, while shareholders face reduction in their percentage holding. The stock may see increased supply pressure post-allotment.