Baheti Recycling Deploys ₹7.48 crore Issue to Repay Debt, Fund Capex
Baheti Recycling Industries Limited – Utilization of Preferential Issue Proceeds
Date: 29 April 2026
Reference: NSE Symbol BAHETI; ISIN INE029Q01017
1. Overview
Baheti Recycling Industries Limited (formerly Baheti Metal & Ferro Alloys Ltd.) has filed a Statement of Deviation/Variation as required under SEBI (LODR) Regulations, confirming that the proceeds from its preferential issue of convertible warrants and equity shares have been fully utilized in line with the original objectives.
2. Fund‑raising Snapshot
| Item | Details |
|---|---|
| Mode of Fund Raising | Preferential Issue (Convertible Warrants & Equity Shares) |
| Date of Issue | 24 December 2025 |
| Total Amount Raised | ₹7.48 crore (₹4.64 crore from equity shares + ₹2.84 crore upfront from warrants) |
| Warrant Structure | 1,91,625 warrants at ₹592.50 each (₹148.13 upfront, ₹444.37 exercisable) |
| Equity Shares Issued | 78,375 shares at ₹592.50 each |
3. Utilization of Funds (as of 31 March 2026)
| Object | Original Allocation (₹ Lakhs) | Actual Utilized (₹ Lakhs) |
|---|---|---|
| Repayment of Borrowings | 464.37 | 464.37 |
| Capital Expenditure (capacity expansion) | 283.85 | 283.85 |
| General Corporate Purpose | – | – |
| Total | 748.22 | 748.22 |
All ₹7.48 crore have been deployed; no unutilized amount remains.
4. Compliance Confirmation
- Audit Committee: No deviation noted.
- Statutory Auditors (Jeevan Jagetia & Co.): Certified full utilization; no comments.
- Board of Directors: Recorded the certificate on 29 April 2026.
- Regulatory References: SEBI (LODR) Reg. 32, SEBI Master Circular No. HO/49/14/14(7)2025‑CFD‑POD2/I/3762/2026, NSE Circular No. NSE/CML/2024/23.
5. Financial & Strategic Implications
- Debt Reduction: Complete repayment of borrowings improves leverage ratios and reduces interest expense.
- Capacity Expansion: Capital expenditure is directed toward expanding existing product lines and introducing new ones, positioning the company for higher revenue streams.
- Liquidity Outlook: The remaining 75% of warrant consideration (≈₹4.65 crore) will be received upon exercise over the next 18 months, providing a phased cash inflow.
- Shareholder Dilution: Full conversion of warrants will increase share count, potentially diluting current shareholders, but also strengthens equity base.
6. Risks & Considerations
- Warrant Exercise Uncertainty – Conversion depends on market conditions; delayed or partial exercise could affect projected cash inflows.
- Dilution Impact – Equity dilution may affect earnings per share (EPS) in the short term.
- Execution of Capex – Successful deployment of capital expenditure is critical; project delays could postpone anticipated benefits.
7. Outlook
The disciplined use of funds, reduction of leverage, and clear investment in capacity expansion provide a moderately positive outlook. Assuming timely execution of capex projects and reasonable warrant conversion, Baheti Recycling Industries is positioned for improved profitability and growth.
Prepared for investors on 29 April 2026.
Original Source Document
View the original exchange filing or announcement.
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