Heavy Buying Alert: 11 consecutive upper circuits in this multibagger penny stock below Rs 5, Company converts 7,35,82,667 warrants into equal number of equity shares!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.21 per share and over 1,200 per cent in 3 years.

Sylph Technologies Ltd informed that the company in their meeting held on Thursday, January 04, 2024, inter-alia, considered and approved the allotment of equity shares on conversion of 7,35,82,667 warrants into 7,35,82,667 equity shares of the face value of Rs 1 each, to non-promoters/public category, on preferential basis, upon receipt of balance amount aggregating to Rs 17,65,98,400 at the rate of Rs 2.40 warrant (being 75 per cent of the issue price per warrant) from the allottees according to the exercise of their rights of conversion into equity shares.  

Due to today's warrant conversion and equity allotment, the company's paid-up capital has expanded to Rs 23,30,82,667, comprising 23,30,82,667 equity shares of Rs 1 each. These new shares hold equal rights with existing ones. Notably, 16,84,17,333 warrants remain outstanding, entitling holders to convert them into an equal number of equity shares by paying the remaining 75 per cent of the conversion price within a specified timeframe.

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 63.77 crore and its 100 per cent stake is owned by the public shareholder.

In its Quarterly Results, the company reported net sales of Rs 1.34 crore and a net profit of Rs 0.05 crore in Q2FY24 while in its annual results, the company reported net sales of Rs 5.33 crore and net profit of Rs 0.76 crore in FY23.

Today, shares of Sylph Technologies Ltd hit a 2 per cent upper circuit to Rs 4.28 per share from its previous closing of Rs 4.20. The stock’s 52-week high of Rs 5.30 and its 52-week low of Rs 2.12. Today, shares of the company saw a spurt in volume by more than 3.43 times on BSE.

The company has reduced its debt and it's almost debt-free (current debt – Rs 0.73 crore). 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. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.21 per share and over 1,200 per cent in 3 years.

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