Bharati Shipyard off 52-week high on share warrant issue

NEW DELHI: Shares of Bharati Shipyard slipped into the red after hitting a fresh 52-week high in Friday’s session after the company informed the BSE that the board has approved issuance and allotment of 26,47,313 convertible warrants to Edelweiss Finance & Investments at Rs 22 per warrant on a preferential basis.

A warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price, called exercise price, Rs 22 in this case, until the expiry date. Companies often use stock warrants as a tool to raise funds.

At 10 am, the stock was trading 1.41 per cent lower at Rs 35. The scrip had jumped 4.22 per cent earlier in trade to hit a 52-week high of Rs 37. In a regulatory filing to the BSE, Bharti Shipyard said: "The company has received 25 per cent of the amount totalling Rs 1,45,60,221 at issue price Rs 5.50 per warrant from Edelweiss Finance & Investments."