Bharat Wire Ropes Limited has informed the Exchange about General Updates
BHARATWIRE · price
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Awaiting price reaction for this filing.
Bharat Wire Ropes' promoters and investors bought 1,124 unlisted Compulsorily Convertible Preference Shares (CCPS) from Export-Import Bank of India through an off-market deal. These CCPS were originally part of a 38,266 CCPS allotment made to a consortium of banks in FY 2020-21, when Rs 382.66 crore of bank loans were converted into preference shares under a Resolution Plan. The company has clarified that this purchase does not change the total paid-up capital at this stage, since CCPS are preference shares that convert to equity at a later stage.
This is a positive signal for shareholders — promoters are increasing their skin in the game by taking back instruments from the lender, which shows confidence in the company's turnaround. However, since CCPS will eventually convert to equity, the promoter's effective equity stake could rise in the future, which may dilute other shareholders at the time of conversion.