Multibagger civil construction company raises Rs 550,32,75,000 via preferential issue for future growth; Aditya Chankad and Quant Mutual Fund allotted warrants!

The stock gave multibagger returns of over 100 per cent in just 6 months whereas BSE Small-cap Index is 31.9 per cent.

Man Infraconstruction Limited (MICL) has received board approval for a fund-raising initiative of approximately Rs 550,32,75,000. The company plans to raise the funds by issuing convertible equity warrants through a preferential issue, subject to regulatory approvals. The company will seek shareholder approval, where required. The funds will be raised through the issue of up to 3,55,05,000 warrants, each convertible into one equity share of Rs 2 face value at a price of Rs 155 per warrant, including a premium of Rs 153. The total amount to be raised is Rs 550 crore.

MICL believes there are significant growth opportunities in the real estate sector and views expanding its real estate business through new project acquisitions, expedited project completions, and overall presence enhancement as a strategic priority. To achieve these goals, the company believes it needs long-term capital. The decision to raise funds is based on the current positive trend in the real estate sector, MICL's established track record in project execution, and a strong balance sheet. The proposed fund infusion through the preferential issue of convertible equity warrants is expected to support and drive robust growth in the company's business in the future.

In the allotment, Aditya S Chankad (son-in-law of Radhakishan Shivkishan Damani) was allocated 32,40,000 warrants and Quant Mutual Fund was allocated 17,50,000 warrants. Along with this various FIIs, FPIs and individual investors.

Man Infraconstruction Limited (MICL) is an integrated EPC (engineering, procurement & construction) company with experience and execution capabilities in port, residential, commercial & industrial and road construction segments. 

Today, shares of MICL plunged 1.74 per cent to Rs 189.45 per share with an intraday high of Rs 195 and an intraday low of Rs 184. The stock also made a new 52-week high of Rs 195 per share and in its recent trading sessions, the stock has been hitting back-to-back 52-week highs.

The company reported positive numbers in its Quarterly Results (Q2FY24) and annual results (FY23). The order book stands at Rs 1,156 crore as of September 30, 2023, which includes 86 per cent infrastructure orders and 14 per cent residential orders.

The shares of the company have an ROE of 26.40 per cent and an ROCE of 32 per cent. The stock gave multibagger returns of over 100 per cent in just 6 months whereas BSE Small-Cap Index is 31.9 per cent and a whopping 870 per cent in 3 years. Investors should keep an eye on this small-cap stock.

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