Multibagger penny stock under Rs 50 and promoters & FIIs increase stake: This auto company approved conversion of 60,00,000 warrants into equal number of equity shares!
The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 13.10 per share.
Pritika Auto Industries Ltd.'s board has approved issuing 60,00,000 new equity shares to "Non-Promoters/Public Category" at a preferential price of Rs. 19 each on the conversion of existing warrants. Each warrant, carrying a Rs 17 per share premium, can be converted into an equity share upon payment of Rs 14.25, raising Rs 8.55 crore for the company. This preferential allotment will increase the company's issued and paid-up capital, potentially impacting its stock price and shareholder structure.
Pritika Engineering Components Limited (PECL) received a major boost as its board approved injecting capital through preferential shares and warrants, while solidifying its growth with the launch of a new high-capacity plant in Punjab, marking a pivotal step in strengthening its market position and propelling PECL towards further expansion and innovation.
In the December quarter for the fiscal year 2023, promoters bought 6,18,19,504 shares and FIIs bought 24,99,769 shares of this multibagger penny stock and increased their stake to 68.38 per cent and 2.41 per cent respectively.
The company has a market cap of Rs 375 crore. According to the Quarterly Results, the company reported net sales of Rs 93.7 crore and net profit of Rs 4.75 crore in Q2FY24 compared to net sales of Rs 100 crore and net profit of Rs 5 crore in Q2FY23. In its annual results, net sales increased by 24 per cent to Rs 362 crore and net profit increased by 15 per cent to Rs 16 crore in FY23 over FY22.
Today, shares of Pritika Auto Industries Ltd plunged 1.25 per cent to Rs 41 per share with an intraday high of Rs 42 and an intraday low of Rs 39.50. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 13.10 per share. Investors should keep an eye on this micro-cap stock.
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