Rights issue alert: Small-cap multibagger stock under Rs 21 with a robust order book of Rs 1,143 crore commands your attention; order bids surpass m-cap!

The majority of the outstanding orders are in the advanced stages of execution, projecting robust revenue growth by fiscal 2024.

In the hustle and bustle of the stock market, where indices are often trapped in predictable ranges, one company is set to break free and make waves—Shriram EPC Ltd (SEPC). While the broader market might be taking cautious steps, SEPC is gearing up for an action-packed performance that could send shockwaves through the trading arena.

SEPC isn't just another stock; it's a powerhouse in the world of integrated design, engineering, procurement, and construction. This company doesn't just build; it crafts solutions for water and waste-water treatment, power plants, mines, and mineral processing. It's the maestro behind the scenes, orchestrating projects that redefine industry standards.

With a legacy spanning over two decades, SEPC has etched its mark as a mid-sized EPC contractor, boasting an enviable track record. It doesn't just execute projects; it creates milestones. From water distribution to power and metallurgy, SEPC's canvas knows no bounds.

What makes SEPC stand out is its diverse portfolio of successful projects. From handling Cement and limestone systems for Sree Jayajothi Cements Ltd to setting up coal chemical plants for SAIL, SEPC is the silent force behind these colossal endeavors. The new turnkey circular shaft for Hutti gold mines in Karnataka is just a glimpse into the marvels SEPC can achieve.

As of March 31, 2023, SEPC's order book is a testament to its prowess, standing tall at Rs 1143 crore. But that's not where it ends. With bids on orders exceeding Rs 3,000 crore, SEPC is ready to script the next chapter of its success story. The majority of the outstanding orders are in the advanced stages of execution, projecting robust revenue growth by fiscal 2024.

But the real kicker is the upcoming Rights issue. Priced at a tempting Rs 13 per equity share, it's a golden ticket for eligible shareholders, with a tantalizing entitlement ratio of 1 for every 36 full paid-up equity shares. The record date, Tuesday, November 28, 2023, is etched in the calendar of every investor looking to ride the SEPC wave.

Where will the net proceeds from this enticing Rights issue flow? SEPC has a clear plan—fueling working capital requirements and serving general corporate purposes. It's a strategic move that mirrors the company's vision: sustainable growth through smart financial decisions.

Investors have already felt the magic. SEPC's stock has been on a mesmerizing journey, delivering multibagger returns with a staggering jump of nearly 173 per cent in the past year alone. The stock's 52-week high and low, standing at Rs 26.3 and Rs 7.45, are like milestones on a rocket's trajectory.

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

DSIJ offers a service 'Flash News Investment' with recommendations for Profit-making Ideas for You (Weekly) based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here