Multibagger stock below Rs 100; Board likely to announce rights issue!

The stock gave multibagger returns of 124 per cent from its 52-week low of Rs 35.25 per share.   

Eiko Lifescience Ltd informed that the Right Issue Committee of the Board of Directors of the Company will be held on Monday, May 15, 2023, inter alia, to consider and determine the terms and conditions of the rights issue including the rights entitlement ratio, the issue price, number of calls to be made and other matters incidental or connected therewith.  

The company obtained in-principal approvals from BSE Limited on Friday, May 05, 2023, for the rights issue of equity shares aggregating up to Rs 25 crore.  

Eiko Lifesciences Limited is in the business of manufacturing speciality & fine chemicals. The company also operates as an investment company. The company has a market cap of Rs 64 crore with a 3-year CAGR of 103 per cent.   

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According to the financials, the company reported positive numbers in its Quarterly Results (Q4) and annual results (FY23). The company has reduced its debt and currently, it’s almost debt free.   

On Friday, shares of the company plunged 3.60 per cent to Rs 76.65 per share from its previous closing of Rs 78.70. The stock gave multibagger returns of 124 per cent from its 52-week low of Rs 35.25 per share.   

Investors should keep an eye on this micro-cap stock under the radar.