FIIs bought 1,71,80,366 shares of this multibagger penny stock: Company increased authorized share capital to Rs 80,00,00,000 and issue of equity shares to non-promoter on preferential basis!

FIIs bought 1,71,80,366 shares of this multibagger penny stock: Company increased authorized share capital to Rs 80,00,00,000 and issue of equity shares to non-promoter on preferential basis!

Kiran Shroff
/ Categories: Trending, Multibaggers

The stock gave multibagger returns of 150 per cent in just 1 year, 900 per cent in 3 years and a whopping 5,350 per cent in a decade.

Today, shares of Paramount Communications Ltd gained 1 per cent to Rs 92.83 per share with an intraday high of Rs 93.58 and an intraday low of Rs 91.60. The stock’s 52-week high is Rs 100.99 and its 52-week low is Rs 28.

In the recent Extra Ordinary General Meeting (EGM) the company's authorized share capital has been increased from Rs 70 crore to Rs 80 crore, achieved by adding Rs 10 crores divided into 5 crore new equity shares of Rs 2 each, while maintaining the existing number and value of preference shares. This expansion passed through an Ordinary Resolution, strengthens the company's financial capacity for future growth.

Additionally, the Board of Directors has resolved to issue equity shares to non-promoters on a preferential basis, subject to approval by a special resolution of the shareholders and the receipt of all required approvals, consents, permissions, and sanctions from the Securities and Exchange Board of India (SEBI), Stock Exchanges, and any other relevant authorities.

Paramount Communications Ltd is engaged in manufacturing of Wires and Cables comprising of power cables, telecom cables, railway cables and specialised cables. The company have handsome numbers of clients, a few of them are Larsen & Toubro, Steel Authority of India (SAIL), BSES, Bharat Heavy Electrical Ltd, Power Grid Corporation, BSNL, Tata Steel, Alcatel Lucent Enterprises, ISRO, Indian Railways, Indian Oil, NTPC, etc.

As of November 2023, the shareholding distribution indicates a rise in the stake held by Foreign Institutional Investors (FIIs) in the company. During the period from October 2023 to November 2023, FIIs acquired an additional 1,71,80,366 shares, causing their ownership to surge from 0.52 per cent to 7.61 per cent.

Paramount Communications Ltd. is pursuing a dual strategy to enhance its capital and broaden its shareholder base. The company plans to issue new shares at Rs. 66.50 each, pending shareholder approval, and increase authorized capital from Rs 70 crore to Rs 80 crore. This move aims to strengthen the company's financial position and support future growth initiatives. Notably, Anand Rathi Global Finance Limited and VLS Finance Limited, along with 76 others, will be allocated shares.

Paramount Communications, known for manufacturing wires and cables, has a market cap of over Rs 2,500 crore and has achieved a robust profit growth of 60 per cent CAGR over the last 5 years. The company recently gained the support of Nexpact Ltd., a foreign institutional investor, which now holds the largest FII stake at 3.58 per cent, reflecting confidence in the company's impressive financial performance.

The company has a strong order book of Rs 361 crore as of September 30, 2023. The portfolio is well-diversified, spanning power, railway, telecom, house wire, export, and EPC projects, providing clear visibility for continued growth. Paramount Communications is in an enviable position, primed to capitalize on its current momentum and deliver even greater returns in the future.

The shares of the company have an ROE of 21.2 per cent and an ROCE of 14 per cent. The stock gave multibagger returns of 150 per cent in just 1 year, 900 per cent in 3 years and a whopping 5,350 per cent in a decade. Investors should keep an eye on this Small-Cap cable manufacturing stock.

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

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