LIC-backed multibagger penny stock under Rs 10 with 1,800 per cent returns: Board announces bonus shares!

The stock gave multibagger returns of 460 per cent in just 2 years and a whopping 1,800 per cent in 3 years.

Integra Essentia Ltd informed that the Board of Directors of the company in their meeting held today i.e., Monday, November 27, 2023, at the Registered Office of the Company, inter-alia considered and approved bonus shares and fundraising plan. Here are the details:

Bonus Issue: The company will issue bonus shares in the ratio of 1:1, meaning that for every 1 equity share of Rs 1 held by an eligible shareholder on the record date, the shareholder will receive 1 additional bonus share of Rs 1. The record date to determine eligible shareholders will be announced separately.

Fund Raising: The company plans to issue and allot securities to raise funds for an aggregate amount of up to Rs 100 crore. This may be done through a variety of methods, including a preferential allotment, QIP, ADR, GDR, FCCB, or any other method or combination thereof. Each tranche will not exceed Rs 50 crore. The terms of the issuance will be decided by the Board or a duly constituted committee of the Board at a later date.

Earlier, the company bagged advance orders amounting to Rs 150+ million from one of India’s premier business houses Sarveshwar Foods Limited, and its material subsidiary Himalayan Bio Orgainc Foods Limited (Sarveshwar Group). The order will be completed in the current fiscal year i.e., by March 31, 2024.

Results: The company's consolidated financial performance improved significantly in Q2FY24 and H1FY24 compared to the same periods in the previous fiscal year. The company's revenue grew by 17.11 per cent in Q2FY24 and 7.79 per cent in H1FY24. EBITDA increased by 420.98 per cent in Q2FY24 and 407.23 per cent in H1FY24, and PAT increased by 248 per cent in Q2FY24 and 217 per cent in H1FY24. 

According to the annual results, the net sales increased by 171 per cent to Rs 24,141.41 lakh and net profit skyrocketed 600 per cent to Rs 666.67 lakh in FY23 over FY22. These results indicate that the company is performing well and is on track to achieve its financial goals.

Furthermore, two micro-cap companies, G G Engineering Ltd and Integra Essentia Ltd, are merging to create a larger and stronger entity. The boards of directors of both companies have approved the merger, which they believe will allow them to pool their resources and expertise, and offer a wider range of products and services to their customers.

The companies' officers are proceeding with the merger in consultation with advisors, including Price Waterhouse & Co LLP. In addition, the boards have approved the redemption of debentures that were issued by Integra Essentia Ltd in 2013. The debentures will be redeemed for a lump-sum payment of Rs 1,50,00,000. This merger is a positive development for both companies and their shareholders.

Integra Essentia Ltd is in the business of life essentials viz., food (agro products), clothing (textiles and garments), infrastructure (materials and services for construction and infrastructure development) and energy (materials, products and services for renewable energy equipment and projects). The company has a market cap of Rs 320 crore. As of September 2023, Life Insurance Corporation of India (LIC) owns a 1.06 per cent stake in the company.

On Friday, shares of Integra Essentia Ltd plunged 3.97 per cent to Rs 7.02 per share from its previous closing of Rs 7.31. The stock gave multibagger returns of 460 per cent in just 2 years and a whopping 1,800 per cent in 3 years.

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