Shares of Bhatia Communications & Retail Ltd posted an increase of 5% to Rs 32.74 a piece as previously quoted at Rs 31.19. The share has a 52 week highest price of Rs 38.90 and the lowest price is Rs 18.30.

In its recent board meeting, Bhatia Communications & Retail (India) Limited approved 1.55 crore of warrants, to be issued at a conversion price of Rs 23.75. The reserves were provided to the promoter group and certain non-promoter allottees on a preferential basis. Each warrant is convertible into one equity share of Re 1 face value with additional payment of Re 17.81 per warrant within 18 months to the date of its allotment.

For issuing the warrants, the total value payable is 36.81 crore of which 9.20 crore has been remitted seventy five percent of the issue price up front. Hence fifteen percent of the issue price will have to be remitted when the conversion right is exercised.

Promoters were given 50 lakh of warrants, Foreign Institutional Investors (FIIs) received one crore of warrants, and the non-promoters were issued 5 lakh of warrants. This tactical business strategy is designed to reinforce the financial and every capital base of the company.

In another significant development, Bhatia Communications announced its first interim dividend for the financial year 2023-24. The board declared a 1% dividend, equivalent to Re 0.01 per equity share. The dividend is subject to approval by the company’s shareholders during the Annual General Meeting (AGM). In an exchange filing, the company stated, “The Board is pleased to recommend a dividend of 1% i.e. Re 0.01 per equity share for FY 2023-24. If approved, the dividend will be paid within the time frame specified under the Companies Act, 2013.” Shareholders on record as of the cut-off date, August 30, 2024, will be eligible to vote on the dividend either through remote e-voting or during the AGM. If declared, the dividend will be disbursed within 30 days of the AGM.

Bhatia Communications also reported solid financial growth in its first-quarter results for FY25. The company’s net sales increased by 11.62% to Rs 104.82 crore, up from Rs 93.91 crore in the previous quarter (Q4FY24). Additionally, net profit saw a 22.5% jump, rising to Rs 3.65 crore for Q1FY25. These results reflect the company’s growing market presence and efficient operational strategies.

Mobile, accessories, domestic devices and other e appliances are being distributed from Bhatia Communications along with After-Sales Support Services & Government Infrastructure. It has established relationships with telecom giants, such as Apple, Samsung, OnePlus, Vivo, Oppo, Realme, Xiaomi, and Motorola, etc. A total of 172 stores, spread across the country, have been established by Bhatia Communications with an investment Rs 8-10 lacs per store: 160 company-operated and 12 franchises.

Story first published: Monday, September 30, 2024, 12:57 [IST]