NACL Industries Limited, a prominent player in the chemical and agrochemical industry, has successfully obtained in-principle approval from both BSE Limited and National Stock Exchange of India (NSE). This approval pertains to the company's plan to issue ₹500 crore worth of equity shares and convertible warrants on a preferential basis. The decision comes as part of the company’s strategy to raise capital and strengthen its financial position.

The in-principle approval granted by the stock exchanges is an essential milestone for NACL Industries, as it paves the way for the company to issue 17,24,137 equity shares of Re. 1 each and 68,96,550 equity shares following the conversion of warrants. These shares and warrants will be issued at a price not less than ₹57 per share, a figure determined based on market regulations. The approval from the BSE and NSE was granted on February 25, 2025, reflecting a significant step in NACL Industries’ capital-raising plans.

This move comes after the company filed its application for the issue with the stock exchanges, following all necessary regulatory guidelines. The approval was granted under Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements), 2015. This provision ensures that listed companies adhere to strict guidelines for issuing securities and raises necessary checks and balances to protect investors and maintain market integrity.

The issuance of equity shares and convertible warrants is intended to support NACL Industries in achieving its corporate and strategic objectives. The company plans to utilize the funds raised through this issue for various corporate activities, such as expansion, working capital requirements, and further investment in growth opportunities. This initiative is expected to have a significant impact on the company’s financial health and its overall market presence.

However, the in-principle approval is not an automatic green light for the listing of the securities. NACL Industries is required to comply with additional regulatory approvals, including SEBI, RBI, and MCA guidelines. Moreover, the company must ensure that the issue and allotment of securities are made strictly in accordance with the provisions laid out in the Companies Act, 2013, Securities Contracts (Regulation) Act, 1956, and other relevant laws and regulations.

To comply with SEBI (ICDR) Regulations, NACL Industries is also required to take certain precautions. These include ensuring that internal controls are in place to monitor trades executed by proposed allottees in the company's scrip. The company must obtain an undertaking from allottees, confirming that they will not engage in intraday trading in the company’s shares or sell the shares before the allotment date. This is part of the effort to prevent any potential non-compliance with the ICDR Regulations and to ensure market integrity.

The company’s corporate governance team is advised to ensure that all requirements under the SEBI (LODR) Regulations, 2015 and ICDR Regulations are thoroughly met, as any non-compliance can result in penalties or issues with the listing of the shares. The approval from BSE and NSE is contingent upon the company fulfilling all the conditions laid out by the stock exchanges and other statutory authorities.

Once the shares and warrants are allotted, the company will need to file a listing application with the exchanges, complete post-issue formalities, and ensure compliance with the applicable rules. NACL Industries will also have to pay the required fees to facilitate the listing and follow the guidelines set forth by the stock exchanges.

This approval also underscores the company's ongoing commitment to raising capital through preferential issues as part of its growth strategy. The funds raised will play an important role in strengthening its operational capabilities and positioning NACL Industries for sustained financial growth in the future.

In conclusion, NACL Industries Limited’s recent in-principle approval from BSE and NSE is a significant milestone for the company. It marks the company’s proactive approach to capitalizing on opportunities in the market and underscores its commitment to ensuring full compliance with SEBI regulations and maintaining transparency in all its dealings. The company’s investors can look forward to the final allotment of shares and warrants, which will contribute to the company’s long-term growth and stability in the competitive market.

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