Stock below Rs 20: Don't miss the action in this stock that has announced rights issue!

In Q2FY23, net sales and net profit rose by 23.27 per cent and 88.37 per cent respectively compared to Q2FY22.

Today, shares of Patel Engineering surged 3.58 per cent to Rs 18.80 per share from its previous closing of Rs 18.15.   

The company recently announced and approved a rights issue to the company's existing shareholders in the ratio 2:1 as of the record date. The company approved a total rights issue of 25,78,72,409 equity shares with a face value of Rs 1 each to eligible equity shareholders for a total of Rs 3,249.19 million.   

The issue price for the rights is Rs 12.60 per fully paid-up equity share (including a premium of Rs 11.60 per equity share). The record date for the rights issue has been confirmed as Monday, February 6, 2023. The issue opening date is Tuesday, February 12, 2023 and the closing date is Monday, February 27, 2023.  

Patel Engineering Ltd is a Small-Cap company, engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works in areas like hydro, irrigation & water supply, urban infrastructure and transport.  

Talking about the financials, the firm has a market cap of Rs 970 crore. The company has performed excellently in its quarterly and annual financial statements. In Q2FY23, net sales and net profit rose by 23.27 per cent and 88.37 per cent respectively compared to Q2FY22. The shares of the company have a PE multiple of 10.23 and an ROE of 3.90 per cent. Investors should keep an eye on this stock.