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1:3 Rights Issue: Multibagger penny stock under Rs 10; PAT Jumps 98.09 Per Cent In Q2FY25; Check Rights Issue Record Date & Other Details Inside
Kiran Shroff

1:3 Rights Issue: Multibagger penny stock under Rs 10; PAT Jumps 98.09 Per Cent In Q2FY25; Check Rights Issue Record Date & Other Details Inside

The stock gave multibagger returns of 220 per cent in just 1 year and a whopping 1,550 per cent in 5 years.

On Monday, shares of PMC Fincorp Limited hit a 5 per cent upper circuit to Rs 5.39 per share from its previous closing of Rs 5.14. The stock’s 52-week high is Rs 5.92 and its 52-week low is Rs 1.42.

PMC Fincorp Limited's Board of Directors held a meeting on June 5, 2024, where they approved the issuance of equity shares on a rights basis to eligible shareholders. This decision was further formalized during a meeting of the Right Issue Committee on September 7, 2024. The company will issue 17,80,20,400 fully paid-up equity shares, each with a face value of Rs 1, in a ratio of 1 right equity share for every 3 existing equity shares. These shares will be offered at an issue price of Rs 2.75 per share, aggregating up to Rs 48,95,56,100. The issuance will follow the guidelines set by the Securities and Exchange Board of India (SEBI) under the Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018, as amended.

The Right Issue Committee held a subsequent meeting on October 21, 2024, to finalize additional terms and conditions for the rights issue. The Record Date for determining shareholder eligibility is Friday, October 25, 2024. The rights issue schedule will commence on Thursday, November 7, 2024, with the last date for on-market renunciation set for Tuesday, November 12, 2024, and the issue closing on Tuesday, November 19, 2024. The company has the discretion to extend the issue period but will ensure it does not exceed 30 days from the opening date. Details regarding other terms, including fractional entitlements, will be outlined in the Letter of Offer. No withdrawals will be permitted after the issue closing date.

DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.

About the Company

PMC Fincorp Ltd was founded in 1985 to provide financial services. Its activities include corporate and personal finance, debt syndication, private placement and marketing of financial products and dealing & investing in the stock market.

According to Quarterly Results, the net sales increased by 196.8 per cent to Rs 8.05 crore, the operating profit increased by 229.1 per cent to Rs 7.53 crore and the net profit increased by 218.4 per cent to Rs 5.86 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 67.4 per cent to Rs 15.58 crore in FY24 compared to Rs 9.31 per cent in FY23. The company reported a net profit of Rs 11.35 crore in FY24 compared to a net loss of Rs 6.36 crore in FY23, an increase of 278.5 per cent.

The promoters of the company own 20.13 per cent and the public owns 79.87 per cent as of September 2024. PMC Fincorp has a market cap of Rs 282 crore and has delivered good profit growth of 48.2 per cent CAGR over the last 5 years. The stock gave multibagger returns of 220 per cent in just 1 year and a whopping 1,550 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

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

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