President of India bought 8,07,23,280 shares as a part of capital infusion: Multibagger stock under Rs 60 with 750 per cent returns
The stock gave multibagger returns of 750 per cent in just 5 years whereas BSE Sensex Index is up by 88 per cent
Today, the stock market was trading in green with the BSE Sensex Index up 0.30 per cent and the NSE Nifty-50 Index up 0.37 per cent. Along with the market in green, one multibagger stock gained 2.70 per cent to an intraday high of Rs 55.61 per share from its previous closing of Rs 54.16 per share. The shares of the company saw a spurt in volume by more than 1.17 times.
The stock name is Industrial Finance Corporation of India Ltd (IFCI Ltd).
The Board Meeting held on January 29, 2025, approved a preferential issue of equity shares to the Government of India (through the President of India) for a capital infusion of up to Rs 500 crore for FY 2024-25. This issuance will comprise approximately 8,07,23,280 equity shares and is subject to shareholder approval at the Extra-Ordinary General Meeting scheduled for Friday, February 28, 2025, as well as approvals from stock exchanges and other applicable regulatory authorities.
IFCI Ltd, formerly called the Industrial Finance Corporation of India, is a government-owned non-banking financial institution established in 1948 specifically to provide long-term financial backing for industrial projects in India. The company, now a Non-Banking Financial Company (NBFC), supports a wide range of industries including airports, roads, telecommunications, power, real estate, manufacturing and the service sector.
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In its Quarterly Results, the net sales for the second quarter of FY25 surged 2 per cent to reach Rs 617.14 crore, a significant increase from the Rs 606.84 crore generated in the same period of the previous fiscal year. The company reported a net loss of Rs 102.27 crore in Q2FY25 compared to a net loss of Rs 78.09 crore in Q2FY24. In H1FY25, the net sales increased by 8 per cent to Rs 1,004.94 crore and net profit increased by 123 per cent to Rs 96.92 crore compared to H1FY24.
The company achieved a significant financial turnaround in FY24. Its net sales experienced growth, increasing by 17.2 per cent to reach Rs 1,986.58 crore compared to the Rs 1,694.64 crore recorded in FY23. More importantly, the company successfully ended a five-year streak of losses by reporting a net profit of Rs 241.05 crore in FY24. This represents a substantial turnaround and a remarkable 301.2 per cent improvement from the net loss of Rs 119.78 crore incurred in FY23.
The company has a market cap of over Rs 14,000 crore. The stock gave multibagger returns of 750 per cent in just 5 years whereas BSE Sensex Index is up by 88 per cent. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.