Penny stock under Rs 10 announces fund raise plan worth Rs 50,00,00,000 via rights issue!

The stock gave multibagger returns of over 100 per cent in just 2 years.

Toyam Sports Limited announced that the Board of Directors have approved fundraising for an aggregate amount not exceeding Rs 50,00,00,000 or Rs 50 crore, through issuing partly paid-up equity shares by way of the rights issue to the eligible equity shareholders of the company as of record date (to be notified subsequently within the due course). And to increase the authorized share capital of the company to Rs 110 crore, to accommodate the present and future fundraising, if any, and consequent alteration in the capital clause of the memorandum of association of the company.

Earlier, the company acquired a 51 per cent stake in Pacific Star Sports Services LLC (Pacific). Pacific has league rights in countries like Kenya, Mauritius, Greece, etc across formats like T10 and T20, domestically and internationally and Toyam has acquired a stake in line with its expansion plans. Pacific's net worth is Rs 154.95 lakh.

Toyam Industries Ltd was incorporated in 1985. The company operates in the commodity business, finance business, restaurant business & event business. The registered office of the company is in Mumbai.

Today, shares of TSS plunged 2.28 per cent to Rs 5.99 per share from its previous closing of Rs 6.13 per share. The stock traded at an intraday high of Rs 6.29 and an intraday low of Rs 5.85. The company has a market cap of over Rs 537 crore. The company has very little debt, with only Rs 0.79 crore in current debt.

The stock gave multibagger returns of over 100 per cent in just 2 years. Investors should keep an eye on this micro-cap stock.

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