Multibagger penny stock under Rs 20: Board approves Rs 2,000 crore fund raise plan; share jumps over 3 per cent!

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Sensex Index is up by 23 per cent.

On Friday, shares of Suzlon Energy Ltd jumped 3.52 per cent to Rs 18.27 per share from its previous closing of Rs 17.65. At the closing bell, shares of the company were trading at Rs 17.89 per share, up 1.36 per cent with a spurt in volume by more than 1.01 times on BSE.

The sudden rise in the stock price was due to the company announcement regarding fundraising up to Rs 2,000 crore. The company plans to issue a certain number of fully paid-up equity shares, convertible bonds (CBs), non-convertible debt instruments, or other instruments in registered or bearer form, either individually or in combination. The issuance will be done in one or more tranches, denominated in Indian Rupees, through private offerings, qualified institutions placement, or a combination of both. The total value of the issuance will not exceed Rs 2,000 crore.

Additionally, the Securities Issue Committee of the Company's Board of Directors, through a circular resolution passed on July 7, 2023, has approved the conversion of 1,59,13,280 partly paid-up equity shares into fully paid-up equity shares. The partly paid-up shares had a face value of Rs 2 with Rs 1 paid-up, while the fully paid-up shares will have a face value of Rs 2 with Rs2 paid-up. The converted shares, referred to as "Converted Rights Equity Shares," will be issued upon receipt of the First and Final Call amounting to Rs 3,97,83,200. As of now, the company's paid-up capital stands at Rs 2489,80,37,460, divided into 1242,49,50,377 fully paid-up equity shares and 4,81,36,706 partly paid-up equity shares, with their respective face values and ISIN numbers.

The company has a market cap of over Rs 22,000 crore with 3 years CAGR of 50 per cent. The shares of the company have a PE of 10.59x and an ROE of 437.16 per cent. The cumulative order book as of May 30, 2023 stands at 1,542 MW. This includes the order book as on March 31, 2023, of 652 MW plus orders secured subsequently of 890 MW.

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Sensex Index is up by 23 per cent. Penny Stock Suzlon Energy should be kept under the radar.