Penny stock below Re 1: Company’s wholly-owned UK-based subsidiary, Dharan International Ltd to raise Rs 793.75 crore through a strategic fundraising
The company currently holds an order book exceeding Rs 260 crore.
Nashik-based KBC Global Ltd (BSE – 541161), a construction and real estate development company, is gearing up for significant growth with a substantial fundraising initiative by its wholly-owned UK subsidiary, Dharan International Ltd (DIL). The company announced on April 30, 2025, that DIL plans to raise EURO 69.975 million, equivalent to approximately Rs 793.75 crore, through a strategic fundraising effort.
This capital infusion will be channelled exclusively towards financing DIL's participation in the Buchanan Port Integrated Industrial Development Project in Liberia. This ambitious project, a collaboration with the Special Economic Zone Authority of the Republic of Liberia, aims to establish a key regional maritime and logistics hub.
The fundraising will involve the issuance of 64,175,000 equity shares at EURO 1 each to institutional investors, aiming to raise EURO 64.175 million. Additionally, DIL will issue 58 convertible bonds, each valued at EURO 100,000, to secure a further £5.8 million.
Company officials stated that this strategic investment is a "critical step" in DIL's global growth strategy, underscoring KBC Global’s commitment to enhancing shareholder value through international diversification and infrastructure-led expansion. The company believes this move will not only broaden its global footprint but also position it to capitalise on emerging opportunities in West Africa, expecting the project to generate sustainable revenue streams and significantly boost the consolidated financial performance in the medium to long term.
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Upon the completion of this equity issuance, DIL will remain a subsidiary company. KBC Global also intends to leverage the anticipated growth in the Maharashtra real estate market following the recent General Elections.
In other recent developments, KBC Global had set April 4th as the record date for its 1:1 bonus share issue, which was approved in an extraordinary general meeting on March 27th. Furthermore, in a meeting held on March 22nd, the Board of Directors approved a proposal to increase the authorised capital and rename KBC Global Ltd to Dharan Infra-EPC Ltd, or another name approved by the Registrar of Companies.
Established in 2007, KBC Global has primarily focused on residential and commercial projects in Nashik, India. The company currently holds an order book exceeding Rs 260 crore. With a market capitalisation of approximately Rs 240 Crore, classifying it as a micro-cap company, this significant fundraising initiative signals a bold step towards expanding its global presence and turning around its business operations through expedited expansion and debt reduction. This move into the African infrastructure sector, following a USD 20 million subcontract secured in June 2024, marks a new chapter in KBC Global's growth trajectory.
Disclaimer: The article is for informational purposes only and not investment advice.