Hazoor Multi Projects Limited (HMPL) has made a significant announcement that could impact its stock price. The company has declared the allotment of shares against warrants, raising ₹6.29 crore. This major update will put the small-cap stock under ₹50 in focus on Monday as markets open, as investors track its movement.
How the HMPL Share Allotment Works
The company's board approved the allotment of 27,96,670 equity shares pursuant to the conversion of 2,79,667 warrants. This was done after the company's fund raising committee held a meeting on Friday, 19 December. The equity shares were allotted at an effective price of ₹30 apiece, with a premium of ₹29 per share.
Benefits to the Company
The conversion linked to the HMPL share allotment has led to an inflow of ₹6,29,25,075 to the company, which represents the balance 75% of the warrant issue price that is payable at the time of the conversion. Originally, the warrants were allotted at an issue price of ₹300 per warrant. Of this, 25% of the amount was paid upfront at the time of allotment, while the remaining amount is set to be paid after the conversion.
Impact on Investors
The new equity shares that have been allotted will rank pari-passu with the existing equity shares of the company in all respects. The company said that 69,48,639 total warrants are outstanding for conversion and these warrant holders are entitled to get their warrants converted into equal number of equity shares of the company.
Current Stock Price
Shares of Hazoor Multi Projects Limited closed at ₹35.85 apiece on the BSE on Friday, a 1.86% drop from the previous close. The stock had opened higher at ₹36.75 per share and touched an intraday low of ₹35.50 apiece.
Remember, this is just an update on the company's recent development, and it's essential to do your own research before making any investment decisions.