5,800 per cent multibagger returns in this penny stock under Rs 25; Board considered and approved the allotment of conversion of 1,48,340 warrants into 14,83,400 equity shares!
The stock gave multibagger returns of 1,100 per cent in 2 years and a whopping 5,800 per cent in 3 years.
The board of directors of Lorenzini Apparels Ltd, in a meeting on July 25, 2024, approved the conversion of 1,48,340 warrants held by Orchard Road Properties Private Limited into 14,83,400 equity shares, upon receiving Rs. 2,25,00,211.2 (75 per cent of the issue price). These warrants were part of a larger allotment of 10,38,371 issued in October 2023. The board also allotted 8,09,127 bonus shares, reserving a portion for potential conversion of remaining warrants. Originally issued under SEBI (ICDR) Regulations, 2018, these warrants allowed conversion into equity shares upon full payment (25 per cent paid upfront, 75 per cent due within 18 months). With this conversion, 2,47,230 warrants remain outstanding. The newly issued equity shares have the same rights as existing shares (after a recent stock split).
Today, shares of Lorenzini Apparels Ltd gained 7.20 per cent to Rs 24.56 per share from its previous closing of Rs 22.91 per share. The stock’s 52-week high is Rs 33.02 while its 52-week low is Rs 12.03.
Lorenzini Apparels Ltd., established in 2007, designs, manufactures, and markets ready-made garments for men and women through their own "Monteil" brand, offering formal, semi-formal, and casual wear, both in their exclusive stores and online, while also utilising third-party contractors for some garment production. The company has a market cap of over Rs 350 crore.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
Earlier, to make Lorenzini Apparels Ltd stock more accessible to investors and increase its trading activity, the company enacted a stock split and bonus share issuance on March 28, 2024. Existing shares with a face value of Rs 10 were subdivided into 10 shares with a face value of Rs 1 each. Additionally, shareholders on the record date received 6 bonus shares (Rs 1 each) for every 11 existing shares (Rs 10 each) they owned, essentially growing their total shareholding. This manoeuvre also expanded the company's authorized share capital from Rs 11,70,00,000 to Rs 17,30,00,000.
According to the Quarterly Results, the company reported net sales of Rs 9.97 crore and a net profit of Rs 0.32 crore in Q4FY24. The net sales increased by 24 per cent to Rs 54.76 crore and net profit skyrocketed by 110 per cent to Rs 5.30 crore in FY24 over FY23. The stock gave multibagger returns of 1,100 per cent in 2 years and a whopping 5,800 per cent in 3 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: Rs 85,000 crore order book: LIC-backed multibagger railway infra company bag new order worth Rs 191,53,74,279.51 from South Eastern Railway