In a significant strategic move, BCL Industries Limited, a prominent player in the brewery and distillery sector, has announced two major decisions approved by its board of directors. The company plans to sell a parcel of its land in Bathinda while simultaneously moving to take full ownership of its subsidiary, Svaksha Distillery Limited.
Board Approves Key Asset Restructuring
The board of BCL Industries, in a filing to the stock exchanges on Thursday, greenlit two crucial proposals. The first involves the sale of the company's land located at Hazi Ratan Link Road in Bathinda. The board has authorized the Managing Director, Mr. Rajinder Mittal, to identify a suitable buyer, negotiate the sale price, and execute all necessary documents, including agreements and deeds, to complete the transaction.
The second and more substantial decision is the acquisition of an additional 25% equity stake in M/s. Svaksha Distillery Limited. This company is currently a subsidiary of BCL Industries. The acquisition will be executed in one or more tranches, and upon completion, Svaksha Distillery will become a wholly-owned subsidiary of BCL Industries Limited.
Financial Details and Strategic Rationale
The company disclosed specific financial terms for the stake purchase. BCL will acquire 14,98,632 equity shares of Svaksha Distillery at a price of ₹367 per share. This translates to a total investment outlay of approximately ₹55 crore. The entire acquisition process is slated to be finalized on or before June 30, 2026.
In its regulatory filing, BCL Industries explained the strategic thinking behind the move. Gaining complete control over Svaksha Distillery is expected to allow the company to consolidate its operations and strengthen its leadership position in India's grain-based ethanol sector. This vertical integration provides BCL with greater operational control and potential for enhanced profitability in a key growth market.
Stock Performance Context
The announcements come at a time when BCL Industries' stock has seen mixed performance on the bourses. On the day of the announcement, the stock was trading marginally higher at ₹32.50 on the National Stock Exchange (NSE). However, the stock has faced pressure in the shorter term, declining by over 18.10% in the past month and 22% over the last six months.
Despite recent volatility, the long-term picture for investors has been remarkably positive. Over a five-year horizon, the stock has delivered multibagger returns of 350%, more than doubling investor wealth. This highlights the company's growth trajectory amidst sectoral challenges and opportunities.
Disclaimer: This news article is for informational and educational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
