Penny stock below Rs 2: 3,200 per cent jump; Board approves 57,00,00,000 preferential allotment- debt free company!

This stock has been consistently hitting upper circuits, recently achieving a fresh 52-week high

The concept of defying gravity in the stock market often conjures images of prolonged periods where prices soar relentlessly, defying all logical explanations. Indeed, in times of bullish sentiment or outright euphoria, rationality often takes a backseat, with market dynamics driven by the sheer determination of bulls to buy versus the bears' willingness to sell. Thus, investor psychology becomes a highly unpredictable factor.

One such remarkable instance of defying market norms is evident in Avance Technologies, a penny stock with a market capitalization of Rs 262, trading at Rs 1.32 per share. Despite its humble beginnings, this stock has been consistently hitting upper circuits, recently achieving a fresh 52-week high. Its performance is nothing short of astonishing, delivering multibagger returns of 3200 per cent over the past year.

With a book value of Rs 1.88 per share, Avance Technologies currently trades at a mere 0.70 times its book value, further enhancing its allure. Additionally, the company boasts nearly zero debt, adding to its appeal among investors seeking fundamentally strong opportunities.

In a pivotal Board meeting held on February 17, 2024, several crucial decisions were made:

1. Increase in Authorized Share Capital: The Board proposed an increase in Authorized Share Capital from Rs 200 crores to Rs 300 crores, pending shareholder approval.

2. Preferential Allotment of Convertible Equity Warrants: Subject to shareholder approval via postal ballot, the Board approved the preferential allotment of up to 57 crore convertible equity warrants to 27 non-promoter investors. These warrants are convertible into equity shares within 18 months from the date of allotment.

3. Approval of Postal Ballot Notice: The Board also greenlit the issuance of a postal ballot notice to obtain shareholder approval for the aforementioned decisions.

The list of allottees for the convertible equity warrants includes esteemed entities and individuals such as:

1. Craft Emerging Market Fund PCC - Prosperity Investments Fund

2. Eminence Global Fund PCC

3. AG Dynamic Funds Limited

4. Craft Emerging Market Fund PCC - Elite Capital Fund

5. Slesha Commercial Limited

6. Sunayana Investment Company Limited

7. Whamia Traders LLP

8. Gittanjali Commosales LLP

9. Rajmish Traders LLP

10. Mishti Traders LLP

11. V Cats Consultancy LLP

12. Send Grid Consultancy LLP

13. Ingenius Investment Advisors LLP

14. HMM Consultants LLP

15. Damini Commosles LLP

16. Birva Trading LLP

17. Mahashali Tradewing LLP

18. Kamla Multitrade LLP

19. Nikhilesh Traders LLP

20. Ranjan Kumar Saha HUF

21. Ranjan Kumar Saha

22. Satyam Joshi

23. Rajan Chopra

24. Beeban Singh

25. Anisa Alnasir Gilani

26. Alnasir Abdul Aziz Gilani

27. Zeenat Al Nasir Gilani

28. Amardeep Singh

29. Alka Kaur

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