Small-cap stock under ₹50 declares allotment of shares against warrants. Details here

HMPL stock price: BSE-listed real estate and infrastructure development firm Hazoor Multi Projects Limited (HMPL) has declared allotment of shares against warrants, raising ₹6.29 crore.

This major update will mean that the small-cap stock HMPL under ₹50 will be in focus on Monday as markets open, as investors will track its movement.

HMPL in a stock exchange filing on Friday after market hours said its board had 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, according to the documents. They have a face value of ₹1 each.

How was the HMPL share allotment done?

The HMPL share allotment against warrants was made on a preferential basis to seven non-promoter and public category investors, in line with the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The seven investors include Ruturaj Bhalchandra Thakare, Deepak Bhansali, Deepak Bhansali (HUF), Saurav Sultania, Trading Idea, Saurav Raidhani, and Piyush Gupta.

The conversion linked to the HMPL share allotment has led to an inflow of ₹6,29,25,075 to the company (about ₹6.29 crore), which represents the 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. The remaining ₹225 per allotment will be paid 18 months from the date of warrant allotment.

The number of equity shares allotted reflects adjustments made post the sub-division of equity shares, where one equity share of ₹10 was split into 10 equity shares of ₹1 each.

“Consequent to today's conversation of warrants/allotment of Equity Share, the issued and paid-up capital of the Company stands increased to ₹24,34,72,020 consisting of 24,34,72,020 equity shares of ₹1 each,” Hazoor Multi Projects said in the press release.

The new equity shares that have been allotted will rank pari-passu with the existing equity shares of the company in all respects, it added.

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.

HMPL share 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.