Penny stock at Rs 22.25 hit upper circuit as company raises Rs 30 crore through preferential allotment for business expansion!
The stock is up by 43.3 per cent from its 52-week low of Rs 15.53 per share.
JHS Svendgaard Laboratories Limited (JHS), a leading player in the oral hygiene product manufacturing sector, has successfully raised Rs 30 crore through a preferential allotment of securities. This funding will drive JHS's ambitious expansion plans. JHS has secured equal investments each from M/s Puran Associates Private Limited, M/s Milky Investment and Trading Company, M/s M. B. Finmart Private Limited, M/s VIC Enterprises Private Limited, Nikhil Nanda, and Coeus Global Opportunities Fund.
The raised funds will be utilized for setting up a greenfield project in Jammu and Kashmir under the J&K Industrial Policy, which offers fiscal benefits for up to 10 years. The project, estimated at Rs 120 crore, will expand JHS’s product categories to include Oral Care, Soap, and Juices/Aerated Beverages, aiming to generate additional business of up to Rs 500 crore. JHS is embarking on a greenfield project in Jammu, J&K, under the Industrial Development Scheme - 2021-30, which provides significant fiscal benefits. Construction is set to start in September 2024, with a completion timeline of 15-18 months and operations expected to commence in January 2026.
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About the Company
JHS Svendgaard Laboratories Ltd, founded in 1997, is an Indian manufacturer of oral and dental care products like toothbrushes, toothpaste, and mouthwash for both domestic and international brands like P&G, Dabur, and Walmart. They also offer contract manufacturing services and have brands like Dr Gold and Aquawhite. Additionally, they are expanding their product range to include talcum powder, soap bars, quick snacks, and other personal care items.
The company has a market cap of Rs 173.43 crore. On Wednesday, shares of JHS Svendgaard Laboratories Ltd jumped 10 per cent upper circuit to Rs 22.25 per share from its previous closing of Rs 20.23. The stock’s 52-week high is Rs 39.45 and its 52-week low is Rs 15.53. The stock is up by 43.3 per cent from its 52-week low of Rs 15.53 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
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