Back-to-Back Upper Circuit in this Penny Stock Under Rs 2; Board converts 1,35,00,000 warrants into equal number of equity shares of the company
From Rs 0.36 to Rs 1.65 per share, the stock gave multibagger returns of 358 per cent in just 3 years.
Sylph Technologies Ltd, in a Board of Directors meeting held on Wednesday, June 19, 2024, approved the allotment of 1,35,00,000 equity shares on the conversion of 1,35,00,000 warrants into equity shares of face value Re 1 each at an issue price of Rs 3.20 each (including a premium of Rs 2.20 per share). This allotment, made on a preferential basis to the "Non-Promoters/Public Category," followed the receipt of the balance amount of Rs 3,24,00,000 at Rs 2.40 per warrant (75 per cent of the issue price) from VKC Corporation Solutions Pvt Ltd, Sygnific Corporation Solutions Pvt Ltd, and Manoj Gupta.
Each of these entities converted a specified number of warrants into equity shares, with the total conversion amounting to 1,35,00,000 equity shares. The conversion process adhered to SEBI (ICDR) Regulations, 2018. With this conversion, the issued and paid-up capital of Sylph Technologies Ltd has increased to Rs 35,86,66,000 consisting of 35,86,66,000 equity shares of Re 1 each. These new shares will rank pari-passu with the existing shares. Additionally, 4,28,34,000 warrants remain outstanding for conversion, allowing holders to convert them into equity shares by paying the remaining 75 per cent (Rs 2.40 per warrant) within 18 months from the allotment date. This preferential allotment includes 1,35,00,000 equity shares issued at Rs 3.20 each upon conversion and the receipt of the balance amount, resulting in a total of Rs 3,24,00,000.
Sylph Technologies Ltd., established in 1992, offers a diverse range of services beyond its core software development, encompassing newspaper distribution, financial instrument trading, solar power plant trading, IT services, newspaper printing, business process outsourcing, and knowledge process outsourcing. The company has a market cap of Rs 55.3 crore and its 100 per stake is owned by the public shareholder.
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Today, shares of Sylph Technologies Ltd hit 5 per cent upper circuit to Rs 1.65 per share from its previous closing of Rs 1.58. The stock’s 52-week high is Rs 5.30 and its 52-week low of Rs 1.51. In the recent trading session, the stock has been hitting back-to-back upper circuits with heavy volume.
According to the Quarterly Results, the net sales increased by 109.54 per cent to Rs 5.25 crore in Q4FY24 compared to Rs 2.51 crore in Q4FY23. The company reported a net loss of Rs 1.82 crore in Q4FY24 compared to a net profit of Rs 0.10 crore in Q4FY23. In its annual results, the net sales increased by 247.2 per cent to Rs 15.75 crore in FY24 compared to Rs 4.54 crore in FY23. The company reported a net loss of Rs 2.51 crore in FY24 compared to a net profit of Rs 0.76 crore in FY23.
The company's share capital was split from 10 shares with a face value of Rs 10 each to 10 shares with a face value of Rs 1 each. The stock split took effect on June 02, 2023. From Rs 0.36 to Rs 1.65 per share, the stock gave multibagger returns of 358 per cent in just 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.
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