14:30 Rights Issue: Penny Stock Under Rs 5 To Keep Under Radar As Company Signs Mou With Leading Agri‐Product FMCG Company, Aiming To Expand Into Diverse Industries Ahead
The stock is up by 55.7 per cent from its 52-week low of Rs 2.06 per share.
Today, shares of Advik Capital Ltd gained 0.33 per cent to Rs 3.02 per share from its previous closing of Rs 3.01. The stock’s 52-week high is Rs 4.35 and its 52-week low is Rs 1.94.
Advik Capital, a prominent Non-Banking Financial Company (NBFC), has strategically entered the supply chain financing market. This initiative aims to expand the company's product offerings and provide vital financial support to businesses across diverse sectors, including agri-food, FMCG, FMCD, metals, and engineering goods. The program is designed to enhance operational efficiency and drive sustainable growth within targeted industry supply chains.
As a key step in this direction, Advik Capital has signed a Memorandum of Understanding with a leading agri-product FMCG company. Although the name of the partner remains confidential, this collaboration serves as a foundation for expanding the company's supply chain financing model. The initiative offers tailored financial solutions, infrastructure development support, expert technical assistance, and a focus on sustainability.
Through direct supplier financing arrangements, Advik Capital aims to mitigate dependency on existing product lines and broaden its operational scope. This strategic move not only diversifies the company's operations but also enhances its ability to adapt to market fluctuations and ensure long-term, sustainable revenue visibility. Advik Capital is committed to advancing financial inclusion and supporting business growth, and the company looks forward to sharing updates on the positive impact of its supply chain financing initiative as it expands its reach and capabilities.
Additionally, Advik Capital Ltd announced a rights issue of up to 19,98,05,013 fully paid-up equity shares at Rs 2.50 per share, including a premium of Rs 1.50. The record date for the rights issue is September 12, 2024, and the entitlement ratio is 14:30. The rights issue period starts on September 24, 2024, and ends on October 4, 2024. Assuming a full subscription, the company's outstanding equity shares will increase from 42,81,53,600 to 62,79,58,613.
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About the Company
Advik Capital, a Non-Banking Financial Company (NBFC) with a total assets of Rs 200 crore, is aiming to achieve the status of a Systematically Important Non-Banking Financial Company (SIB-NBFC) by 2025. To achieve this, the company is executing a comprehensive expansion strategy that includes enlarging its business offerings, exploring new-age sectors like healthcare, and strategically evaluating existing lines to improve overall performance. The company is also infusing additional resources to strengthen its operations and attract industry veterans with expertise in risk, operations, governance and technology.
According to Quarterly Results, the net sales increased by 49.2 per cent to Rs 227.90 crore, operating profit increased by 89.2 per cent to Rs 4.75 crore and net profit increased by 235.7 per cent to Rs 2.35 crore in Q1FY25 over Q1FY24. In its annual results (FY24), the company reported net sales of Rs 840 crore and net profit of Rs 6 crore.
The company has a market cap of over Rs 180 crore and has delivered good profit growth of 121 per cent CAGR over the last 5 years. According to the shareholding pattern, the promoters of the company own 21.80 per cent and the public owns a 78.20 per cent stake in the company as of June 2024. The stock is up by 55.7 per cent from its 52-week low of Rs 2.06 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.