4:1 Bonus Share & FIIs bought 3.27 per cent stake: Multibagger penny stock at Rs 19.97 with Rs 2,326 crore order book hit upper circuit on May 14

The stock gave multibagger returns of 130 per cent in 1 year and a whopping 970 per cent in 5 years.

Today, one of the Top Gainers on BSE, shares of Salasar Techno Engineering Ltd (STEL) hit 5 per cent upper circuit to Rs 19.97 per share from its previous closing of Rs 19.02 per share. The stock’s 52-week high is Rs 34.08 per share while its 52-week low is Rs 8.33 per share.

STEL, established in 2006, acts as a single source for customized steel infrastructure solutions in India. They offer comprehensive engineering, design, fabrication, galvanisation, and installation services. Their product range includes various towers (telecom, power transmission, lighting, etc.), substations, solar structures, railway electrification components, bridges, and custom steel structures. Additionally, STEL acts as an EPC contractor, undertaking complete project management for rural electrification, power lines, and solar plants. The company has an order book of Rs 2,326 crore as of December 31, 2023. 

The Board of Directors approved converting 3,25,00,000 fully convertible warrants held by Coeus Global Opportunities Fund (a non-promoter public category investor) into the same number of equity shares. The conversion price is Rs 14.40 per share (including a premium of Rs 13.40), with Coeus already paying Rs. 3.60 per warrant (25 per cent upfront cost) upon allotment in April 2024. This final payment of Rs. 10.80 per warrant (75 per cent balance) brings the total investment to Rs 35,10,00,000. Following this conversion, the company's issued and paid-up capital increases to Rs 172,67,70,290 and Coeus will now hold 3,25,00,000 equity shares, representing 1.88 per cent ownership.

Additionally, the company has completed the payment of the remaining balance of Rs 168 crore for the acquisition of EMC Ltd. (formerly known as Electrical Manufacturing Company Limited). This successful acquisition marks a significant milestone in Salasar's ongoing strategy to expand its market presence and capabilities.

Also Read: 1:1 bonus share and promoter & FIIs increase stake: This steel tube manufacturer company has achieved the highest ever revenue of Rs 2,040.23 crore!

Earlier to this, the company secured two major contracts. In a joint venture with Rail Vikas Nigam Ltd (RVNL) where STEL holds a 49 per cent stake, they won a Rs 173.99 crore project from Madhya Pradesh Power Transmission Company Limited (MPPTCL). Additionally, STEL secured a significant Rs 1,033.78 crore contract from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).

According to Quarterly Results (Q3FY24), the net sales increased by 26.32 per cent to Rs 304.35 crore and net profit increased by 56.75 per cent to Rs 167.10 crore compared to Q3FY23 while in nine-month results (9MFY24), the net sales increased by 18.43 per cent to Rs 841.10 crore and net profit increased by 40.89 per cent to Rs 35.96 crore compared to 9MFY23. As of April 2024, FIIs increased their stake to 6.27 per cent compared to 3 per cent in March 2024. 

The company issued bonus shares in a 4:1 ratio to its shareholders on February 1, 2024 (ex-date). This means that for every one share a shareholder held, they received four additional shares. The stock gave multibagger returns of 130 per cent in 1 year and a whopping 970 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.