KBC Global Ltd Approves Bonus Equity Share of 1:1
In a significant move to boost its business operations and expansion plans, KBC Global Ltd has approved a 1:1 bonus issue, subject to shareholder approval. This development is expected to increase the authorized capital of the company and pave the way for its rebranding as Dharan Infra-EPC Ltd.
The bonus issue, which is a rare occurrence in the corporate world, is designed to reward shareholders and increase the company’s equity base. The move is also aimed at strengthening the company’s financial position and supporting its turnaround strategy.
In addition to the bonus issue, KBC Global Ltd has also announced plans to issue convertible warrants to raise ₹99.5 crore. The funds raised from this issue will be used to reduce the company’s debt and improve its financial flexibility.
The company’s Ghana subsidiary has secured a significant project worth $12.5 million in Liberia, which is expected to boost its revenue and profitability. Additionally, Karda International, a subsidiary of KBC Global Ltd, has secured a $20 million contract in Africa, further reinforcing the company’s presence in the region.
The bonus issue and convertible warrant issue are part of KBC Global Ltd’s strategy to turnaround its business operations and expedite its expansion plans. The company is focusing on debt reduction, improving its financial performance, and expanding its operations in Africa and other regions.
Background of KBC Global Ltd
KBC Global Ltd is a leading player in the infrastructure and engineering sector, with operations in India, Africa, and other regions. The company has a strong track record of delivering complex infrastructure projects and has established itself as a reliable partner for governments and private sector clients.
In recent years, KBC Global Ltd has faced some challenges, including delays in project execution, cost overruns, and debt accumulation. However, the company has been working to address these issues and has implemented various measures to improve its financial performance and operational efficiency.
Impact of the Bonus Issue and Convertible Warrant Issue
The bonus issue and convertible warrant issue are expected to have a positive impact on KBC Global Ltd’s financial performance and share price. The bonus issue will increase the company’s equity base, making it more attractive to investors and improving its financial flexibility.
The convertible warrant issue will provide the company with the necessary funds to reduce its debt and improve its financial position. The funds raised from this issue will also be used to support the company’s expansion plans and increase its competitiveness in the market.
The projects secured by KBC Global Ltd’s Ghana subsidiary in Liberia and its subsidiary Karda International in Africa are expected to boost the company’s revenue and profitability. These projects will also provide a platform for the company to showcase its capabilities and expand its presence in the region.
Conclusion
KBC Global Ltd’s decision to approve a 1:1 bonus issue and issue convertible warrants to raise ₹99.5 crore is a significant development in the company’s turnaround strategy. The bonus issue will increase the company’s equity base and improve its financial flexibility, while the convertible warrant issue will provide the necessary funds to reduce its debt and support its expansion plans.
The company’s subsidiaries have also secured significant projects in Africa, which will boost its revenue and profitability. Overall, KBC Global Ltd’s move is expected to improve its financial performance, strengthen its financial position, and expedite its expansion plans.
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