Small-cap stock under ₹50: Bhatia Communications & Retail, a small-cap stock with a market capitalization of around ₹285 crore, informed investors through an exchange filing that the company’s board of directors, at its meeting held on Monday, March 9, approved the allotment of equity shares upon the conversion of warrants.
The company said it has allotted 1.05 crore equity shares with a face value of ₹1 each at an issue price of ₹23.75 per share, including a premium of ₹22.75 per share, following the conversion of 1.05 crore warrants. The allotment was made to members of the promoter group and Mauritius-based FII Forbes EMF, in accordance with applicable regulations.
Forbes EMF is a Mauritius-based Foreign Institutional Investor (FII) that invests in Indian small-cap stocks.
According to the filing, the company received ₹18.70 crore, representing 75% of the issue price per warrant, from the allottees at the time of exercising their conversion rights. The conversion has been carried out in line with provisions under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Among the allottees, Forbes EMF received the largest allocation with 50 lakh equity shares following the conversion of an equal number of warrants. Hema Sanjeev Bhatia and Garima Nikhil Bhatia were each allotted 25 lakh shares, while Pankajkumar Kishorkumar Ahuja and Rahul Rajkumar Chawla were allotted 2.5 lakh shares each, the company said.
The exchange filing also noted that no warrants remain pending for conversion after the latest allotment.
Bhatia Communications & Retail share price trend
The small-cap stock has remained under pressure recently, falling 28.2% over the last six months, including March, reaching ₹21.94 apiece.
The decline has left the stock trading 63% below its record peak of. ₹59.50, touched in October 2022.
In terms of yearly performance, the stock closed CY25 with a decline of 17.55%. The weakness has continued into this year, with the stock falling 9% so far.
For the December-ending quarter (Q3FY26), the company reported revenue from operations of ₹174.54 crore, higher than the ₹126.80 crore reported in the same quarter last year. In the September quarter, revenue stood at ₹134.33 crore.
On the operating front, the company posted an EBITDA of ₹7.36 crore, compared with ₹5.34 crore in the year-ago quarter, with margins expanding to 4.3% from 4.2%. On the bottom line, the company reported a net profit of ₹4.90 crore, 37% higher than ₹3.58 crore in the December 2024 quarter.
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