Ashish Kacholia’s portfolio multibagger penny stock with 1,490 per cent returns; Board likely to announce rights issue for business expansion!

In a span of 3 years, the stock gave multibagger returns of 1,490 per cent to its investors.

DU Digital Global Limited informed that a Board of Directors meeting is scheduled on Friday, December 15, 2023, at 3:30 PM. The primary agenda item is to consider and approve a proposal for raising funds through issuing various financial instruments. These may include equity shares, convertible or non-convertible securities, warrants, or debt securities. The fundraising could occur through various methods including preferential issues, private placements, rights issues, or any other combination permitted by law. The board will seek all necessary regulatory and shareholder approvals for the chosen fundraising strategy.

Funding for Subsidiaries:

• The Board approved an inter-corporate loan of Rs 8.5 crore to Dudigital Global LLC, a wholly-owned subsidiary, to support its operations.
• In addition, they approved an investment of Rs 8.5 crore into other subsidiaries or new companies likely linked to the company's expansion plans.
• The Board also granted a loan of Rs 30 lakh to OSC Global Processing Private Limited, another subsidiary of Dudigital Global Limited, providing additional financial support.

DU Digital Global Limited is a company that manages the human interface between visa applicants and the technical visa processing unit of embassies in other countries. The company also provides other services related to visas, passports, and other citizen services.

Today, shares of DU Digital Technology Limited were locked in a 5 per cent lower circuit to Rs 51.70 per share from its previous closing of Rs 54.40. The stock is up by 40 per cent from its 52-week low of Rs 37.05 per share and down by 80 per cent from its 52-week high of Rs 254.55 per share. In a span of 3 years, the stock gave multibagger returns of 1,490 per cent to its investors.

In the current financial year, the company issued bonus shares in the ratio of 3:1, meaning that for every 1 existing share, shareholders received 3 new shares. The ex-date for the bonus shares was Friday, June 02, 2023.

DU Digital Global Limited is a well-established company with a strong track record of profitability. The company is well-positioned for growth in the future, as the demand for its services is expected to increase. The company has a market cap of Rs 360.51 crore and reported positive numbers in its half-yearly results (H1FY24) and annual results (FY23).

Ace Investor, Ashish Kacholia has increased his stake in DU Digital Global Limited to 9.15 per cent by purchasing an additional 4.19 per cent stake in October 2023. This is a significant development for the company, as it demonstrates that a well-respected investor is confident in its future prospects.

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