Multibagger from its 52-week low: This micro-cap company approved the acquisition of a 100 per cent stake in Grenew FZE, a company incorporated in UAE

The shares of the company have an ROE of 74.5 per cent and an ROCE of 86.8 per cent.

Today, shares of Quicktouch Technologies Limited plunged 1.57 per cent to Rs 201.20 per share with an intraday high of Rs 204 and an intraday low of Rs 201. The stock’s 52-week high is Rs 274 and its 52-week low is Rs 92.

Incorporated in 2013, Quicktouch Technologies Limited is an information technology company. The company is in the business of software IT solutions and consulting services, IT product/software development & software commercial training and web designing.

The Board of Directors is considering an investment shift towards Grenew FZE, a UAE company specializing in electronics refurbishment and electronic waste recycling, deeming it a strategically advantageous opportunity. This shift will likely result in the discontinuation of the previously approved acquisition of a 30 per cent stake in Pinnacle Group FZ LLC (UAE), as evidenced by the board's withdrawal of approval granted on January 5, 2024. Acquiring Grenew FZE aligns Quicktouch Technologies with sustainability goals, expands its market reach, and diversifies revenue. The acquisition is expected to be completed on or before March 2025, with a cash investment purchasing 150 Grenew FZE shares at 1,000 AED per share, granting Quicktouch a 100 per cent stake in the company. Grenew FZE, based in the Hamriyah Free Zone (Sharjah, UAE), was incorporated in 2016 and is establishing its plant for operations. It serves the Middle East, Hong Kong, Singapore, and other growing markets.

Earlier, the Board of Directors of the company approved the allocation of a total of 59,50,000 fully convertible warrants, each warrant granting the holder the right to subscribe to one equity share, at an issue price of Rs 196.17 per warrant. These warrants were allocated on a preferential basis to individuals from both the Promoter and Non-Promoter/Public Category. Notably, Promoters Ram Gopal Jindal, Madhu, and Gaurav Jindal received a collective allocation of 30,00,000 warrants, while Foreign Institutional Investors Forbes EMF and Minerva Ventures Fund were allotted 16,00,000 warrants. The remaining 13,50,000 warrants were allocated to public shareholders Aryadeep Tie Up Private Limited, Kiwi Dealcom Private Limited, and Ayodhya Vincom Private Limited.

This development holds significance for Quicktouch Technologies, a company experiencing rapid growth, particularly through its flagship product QuickCampus, an online education platform utilized by over 3,700 schools in India. Quicktouch Technologies is also diversifying its presence across sectors such as payments, FinTech, and InsurTech. The issuance of these preferential warrants will furnish Quicktouch Technologies with the essential capital required to sustain its growth momentum and extend its market penetration within India.

The company has a market cap of Rs 116 crore and reported positive numbers in its half-yearly and annual results. The shares of the company have an ROE of 74.5 per cent and an ROCE of 86.8 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 92 per share.

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