900 per cent returns: Saint Capital Fund bets on this multibagger micro-cap stock with 5,00,000 warrants allocation; do you own it?

The stock gave multibagger returns of 415 per cent in just 1 year and a whopping 900 per cent in 3 years.

OK Play India Limited informed that the company's Board of Directors, at their meeting held on November 27, 2023, has approved the issuance of up to 25,75,000 fully paid-up equity shares at a price of Rs 125 per equity share, including a premium of Rs 115 per equity share. A total consideration of up to Rs.30,93,75,000 will be done via this preferential issue of shares.

Saint Capital Fund spearheaded a preferential issue of warrants, with 15 individuals and companies participating and Saint Capital Fund itself receiving an allocation of 5,00,000 shares worth Rs 6.25 crore.

Earlier, the company announced a new partnership with MANN+HUMMEL, a global leader in filtration technology, to combat air pollution in India. Through its newly acquired subsidiary, MRH Technologies Private Limited, OK Play India has entered into an exclusive agreement with MANN+HUMMEL Filter Private Limited to distribute, supply, install, and service MANN+HUMMEL's Pure Air Mobile Fine Dust Particle Filter Roof Box.

This partnership is expected to have a significant impact on air quality in India. The Pure Air Mobile Fine Dust Particle Filter Roof Box is a powerful tool that can help to reduce air pollution levels and improve the health of millions of people. MANN+HUMMEL is a Euro 4.8 billion German MNC that is a global leader in filtration technology. The company has a presence in over 80 countries and has been operating in India for the past 18 years.

Furthermore, the Board of Directors of the Company had approved sub-divide/split of the equity shares of the company, i.e., division of every 1 equity share of the nominal/face value of Rs 10 each into 10 equity shares of the nominal/face value of Rs 1 each. The company has not fixed the record date for the stock split yet.

Talking about the financials, the company has a market cap of over Rs 390 crore. According to Quarterly Results, the company reported a turnaround story wherein the company reported a net profit of Rs 0.42 crore in Q1FY24 compared to a net loss of Rs 1.42 crore in Q1FY23 and net sales increased by 0.55 per cent to Rs 40.31 crore in Q1FY24 compared to the same quarter last year. According to half-yearly results, the company also reported a turnaround story wherein the company reported a net profit of Rs 0.78 crore in Q1FY24 compared to a net loss of Rs 4.42 crore in Q1FY23 and net sales increased by 3 per cent to Rs 83.56 crore in H1FY24 compared to last year.

OK Play India Ltd is a leading manufacturer of plastic moulded products in India, with two business segments: Toys and Automotive Components. The company's products are exported to over 60 countries around the world, and OK Play is a major player in the Indian toy industry. The company has a market cap of Rs 312 crore. In the September quarter 2023, FIIs have increased their stakes from 13.51 per cent to 19.64 per cent.

Today, shares of OK Play India Ltd were locked in 5 per cent upper circuit to Rs 156.50 per share from its previous closing of Rs 149.05. The stock gave multibagger returns of 415 per cent in just 1 year and a whopping 900 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.