Penny stock below Rs 30: Board of this micro-cap company approved allotment of 6,70,000 equity shares and 39,55,062 warrants convertible into equity shares!

The stock is up by 66 per cent from its 52-week low of Rs 16.10 per share and a whopping 230 per cent in 3 years.

North Eastern Carrying Corporation Ltd (NECC) (BSE: 534615; NSE: NECCLTD) informed that the Board of Directors has at its meeting held on April 04, 2024 approved the allotment of 6,70,000 equity shares and 39,55,062 shares warrants convertible into equity shares on the preferential basis of the face value of Rs 10 each at a price of Rs 32.05 which includes a premium of Rs 22.05 per equity share to promoters and another non-promoter group person for cash consideration by way of the preferential issue on a private placement basis in accordance with the Companies Act, 2013, SEBI (ICDR) Regulations and other applicable laws.

Today, shares of North Eastern Carrying Corporation Ltd plunged 0.04 per cent to Rs 26.45 per share from its previous closing of Rs 26.46 with an intraday high of Rs 26.75 and an intraday low of Rs 25.85. The stock’s 52-week high is Rs 37.40 while its 52-week low is Rs 16.10

North Eastern Carrying Corporation Ltd primarily provides freight transportation services to bulk and retail customers, particularly in the Full Truckload (FTL) segment, along with other services like warehousing and packing. The company has a market cap of over Rs 250 crore.

According to Quarterly Results, the net sales increased by 18.7 per cent to Rs 85.59 crore and net profit increased by 18.3 per cent to Rs 2.52 crore in Q3FY24 compared to Q3FY24. In its nine-month results, the 4.6 net sales increased by per cent to Rs 243.27 crore and net profit increased by 11 per cent to Rs 51.58 crore in 9MFY24 compared to 9MFY24. According to annual results, the net sales increased by 22.40 per cent to Rs 306 crore and the net profit increased by 50 per cent to Rs 6 crore in FY23 over FY22.  

Earlier, NECC not only secured a 3-year contract worth Rs 52.48 crore for polymer transportation from GAIL (India) Limited but has also partnered with S.G. Logistic Management Private Limited (SGL) to enter the electric vehicle (EV) trucking business. This collaboration, involving a Rs 20 crore investment and a 20 per cent stake acquisition in SGL, aims to build a sustainable and eco-friendly transportation network using electric vehicles, ultimately strengthening NECC's presence in the logistics sector and promoting EV adoption in India.

The stock is up by 66 per cent from its 52-week low of Rs 16.10 per share and a whopping 230 per cent in 3 years.

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