Ramesh Damani to receive 32,733 preference shares in this Indore-based small-cap multibagger stock; with an order book standing at Rs 837 crore!

The proposed issuance includes 15,000 convertible warrants to promoter Pratik Patel at Rs. 1527.50 per warrant, totaling Rs. 2,29,12,500,

Indian markets have demonstrated a resilient rebound following a tumultuous period in the past few trading sessions, with the Nifty index surpassing the 21,600 mark. The majority of sectoral indices are in positive territory, notably led by Nifty Metal, which has gained 0.8 per cent.

Amidst this market fervor, one Small-Cap stock that stands out is Jash Engineering Ltd. The stock has surged by 2.77 per cent on the NSE, catching the attention of market participants. Jash Engineering, headquartered in Indore, specializes in manufacturing a diverse range of equipment for Water Intake Systems, Water and Waste Water Pumping Stations, Treatment Plants, Storm Water Pumping Stations, and various applications in sectors such as Power, Steel, Cement, Paper & Pulp, Petrochemicals, Chemicals, Fertilizers, and other process plants.

Having rebounded significantly from its April 2023 low of Rs 804.85, the stock recently achieved a fresh 52-week high of Rs 1,780 and giving multibagger returns to its shareholders. Notably, the company has been in the news due to a board meeting held on January 16, 2024.

During this meeting, Jash Engineering Ltd outlined its intention to issue securities on a preferential basis, pending shareholder approval. The proposed issuance includes 15,000 convertible warrants to promoter Pratik Patel at Rs. 1527.50 per warrant, totaling Rs. 2,29,12,500, and an equivalent issuance to non-promoter Ranjit Nair. Additionally, 2,42,215 equity shares at Rs. 1527.50 per share are to be allotted to 19 non-promoter entities, aggregating to Rs. 36,99,83,412.50. This group of non-promoter allottees comprises individuals, as well as entities such as LLPs and private limited companies.

Key non-promoter allottees include Ramesh S Damani, proposed to be allotted 32,733 equity shares, Monika Gharware with 32,733 shares, HJ Securities Pvt Ltd with 26,186 shares, Bhadra Jayantilal Shah with 19,639 shares, and MC Jain Infoservices Pvt Ltd with 19,639 shares.

For the convertible warrants, 25 per cent of the amount is payable upon application, with the remaining balance due upon conversion to equity shares, a process that can occur within 18 months of allotment. An Extraordinary General Meeting (EGM) is slated for February 15, 2024, to secure shareholder approval for these preferential issues.

Highlighting the company's robust position, the current order book stands at Rs. 837 crores, with a significant portion earmarked for international projects. Notably, more than 60 per cent of the orders, amounting to Rs. 597 crores, pertain to projects outside India, showcasing the company's growing strength in the American market. This international traction underscores Jash Engineering's positive trajectory and its emergence as a formidable player in the global landscape.

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