Rs 2,149 crore order book: Board of his multibagger electrical equipment company likely to raise funds by issuing equity shares; scrip hit upper circuit & 52-week high!

The stock gave multibagger returns of 292 per cent from its 52-week low of Rs 38.65 per share.

On Friday, shares of Transformers and Rectifiers Ltd zoomed 20 per cent upper circuit to Rs 151.4 per share from its previous closing of Rs 126.2. The stock also traded at a new 52-week high of Rs 151.4 per share with a spurt in volume by more than 4 times on BSE.  

The sudden rise in the stock price was due to the company announcing that the meeting of the Board of Directors of the company will be held on Tuesday, September 12, 2023, inter alia, to transact the following:

1) Proposal of fundraising by way of issue of equity shares and/or equity-linked securities and/or securities convertible into equity shares and/or secured, redeemable, non-convertible debentures and/or unsecured, redeemable, nonconvertible debentures and/or optionally convertible debenture on preferential basis to the Non-Promoter Investor(s) and/or through Qualified Institutional Placement (QIP), subject to approval of the Members

2. Other relevant matters.

Transformers and Rectifiers (India) Ltd. is a manufacturer of power, furnace and rectifier transformers. The company continuously thrives to deliver quality products and services and over a period of time has become a leading manufacturer of transformers in the country. The company has a market cap of Rs 1,905 crore and as of July 31, 2023, the company’s order book stands at Rs 2,149 crore.

The company has delivered good profit growth of 49.7 per cent CAGR over the last 5 years. The stock gave multibagger returns of 292 per cent from its 52-week low of Rs 38.65 per share. Investors should keep an eye on this Small-Cap stock.

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