Anil Kumar Goel allotted 20,00,000 shares in preferential issue; small-cap stock to receive Rs 19,09,51,545 in arbitration claim - don't miss the action tomorrow!

Anil Kumar Goel, allotted 20,00,000 lakh shares through a preferential issue at a price of Rs. 162/- per share

What a remarkable start to the week it has been for the Indian markets, with the Nifty index surging nearly 1.80 per cent, propelled by widespread buying across sectors. Notably, the standout performer of this rally was Reliance Industries, which recorded its highest single-day gains since September 2020, surging by an impressive 7 per cent, contributing over 160 points to Nifty's overall gain.

Adding to the market fervor, even a Small-Cap gem, Ganesh Benzoplast Ltd, seized the spotlight by witnessing a substantial jump of nearly 5.5 per cent on Monday. The stock's upward trajectory can be attributed to two pivotal catalysts.

Firstly, the renowned investor known for his acumen in small-cap investments, Anil Kumar Goel, allotted 20,00,000 lakh shares through a preferential issue at a price of Rs. 162/- per share, including a premium of Rs. 161/- per share. This strategic investment amounted to Rs. 32,40,00,000/- (Rupees Thirty-Two Crores Forty Lac Only).

Secondly, Ganesh Benzoplats Ltd shared another significant development – its subsidiary company, Infrastructure Logistic Systems Limited (ILSL), emerged victorious in an arbitration matter with Indorama Synthetics (I) Ltd. The arbitration, initiated by Indorama in October 2015, involved a counter claim filed by ILSL against Indorama for breaching the terms of the Transportation Agreement dated August 27, 2012, pertaining to the transport of goods from JNPT Port to Nagpur/Butibori rail siding by Railway tankers.

The arbitral tribunal ruled in favor of ILSL, partially admitting the company's counter claim. As per the award, Indorama is directed to pay ILSL a sum of Rs. 19,09,51,545/- (Rupees Nineteen Crores Nine Lacs Fifty-One Thousand Five Hundred Forty-Five Only). Notably, out of this amount, Rs. 10,20,79,263/- (Rupees Ten Crores Twenty Lacs Seventy-Nine Thousand Two Hundred Sixty-Three Only) will accrue future interest at the rate of 12 per cent per annum from the date of the award until realization.

This recent positive momentum has propelled the stock to a notable upswing of 22.56 per cent over the last three months, with a 9.05 per cent increase observed in the past month alone. Clearly, Ganesh Benzoplats Ltd is emerging as a noteworthy player, riding high on strategic investments and favorable arbitration outcomes.

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