4:1 Rights Issue After 10:1 Stock Split: Multibagger Penny Stock Under Rs 10 Hit Upper Circuit; PAT Jumps 377 Per Cent In Q2FY25
The shares of the company saw a spurt in volume by more than 5.09 times on BSE.
Today, shares of NHC Foods Ltd hit 10 per cent to Rs 7.57 per share from its previous closing of Rs 6.89 per share. The stock’s 52-week high is Rs 8.40 while its 52-week low is Rs 3.22. The company has a market cap of Rs 90 crore. The shares of the company saw a spurt in volume by more than 5.09 times on BSE.
NHC Foods Limited, a leading exporter of agricultural commodities and spices, has showcased remarkable growth in its second quarter of the fiscal year 2024. The company's net profit surged by a substantial 377 per cent to reach Rs 205.08 lakh, while revenue witnessed a significant 60.1 per cent increase to Rs 6,617.08 lakh. This impressive performance underscores the company's strong financial position and strategic initiatives.
To further bolster its growth trajectory, NHC Foods has received in-principle approval from the Bombay Stock Exchange (BSE) for a Rights Issue. The Rights Issue is designed to raise Rs 4,742.00 lakh, which will be utilized to enhance working capital and repay secured working capital loans. This strategic move is expected to significantly improve the company's profitability and operational efficiency.
The Rights Issue offers an attractive proposition for eligible equity shareholders. By subscribing to the issue at a potentially competitive price, shareholders can increase their stake in the company and benefit from its future growth. The Rights Issue also presents an opportunity for public shareholders to enhance their involvement and equity ownership in NHC Foods. The key details of the Rights Issue include a closing price of Rs 6.89 as on November 22, 2024, a Rights Issue size of 3,47,42,00,000 shares, a Rights Issue price of Re 1 per share, a record date of November 26, 2024, an issue opening date of December 5, 2024, and an issue closing date of December 18, 2024. Eligible equity shareholders will be offered 4 Rights Equity Shares for every 1 fully paid-up Equity Share held.
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About the Company
NHC Foods (NHC) has been a trusted name in the industry since 1960 and is a three-star merchant export house and a leading exporter of premium agricultural commodities and spices. Renowned globally for its expertise in the merchant export of Spices, Food Grains, Oil Seeds, Pulses, and Dry Fruits. NHC proudly serves over 30 countries with its signature brands such as Indi Bite, Eat'mor, and Saaz. With a strong focus on technology upgrades, process improvements, and market diversification, NHC is strategically expanding its footprint both in India and new international markets.
Earlier, the shares of the company underwent a stock split where each existing equity share with a face value of Rs 10 will be subdivided into 10 shares with a face value of Re 1 each. This means shareholders will receive 10 new shares for every 1 share. The ex-date for the stock split was Monday, July 22, 2024.
The stock gave multibagger returns of 135 per cent from its 52-week low of Rs 3.22 per share and a whopping 1,330 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.