1,500 per cent returns: Heavy buying in this multibagger stock as it enters into Aerospace & Defence industry; scrip hit 52-week high!

The stock is up by 70 per cent year to date and gave multibagger returns of 1,500 per cent in 3 years.

Goodluck India Ltd. (BSE: 530655, NSE: GOODLUCK), a specialised engineered steel products manufacturer catering to automobile, aerospace, oil & gas, T&D, defence, solar and overall infrastructure space, today announced its plans to capitalise upon the ever-growing opportunities in the Defence and Aerospace sectors, through its wholly owned subsidiary - Goodluck Defence and Aerospace Private Limited.

Besides, the company also announced its plans to issue up to 5,00,000 warrants and 11,00,000 equity share, on a preferential basis to the promoter and non-promoters respectively, at an exercise price of Rs 600 per underlying equity share of the face value of Rs 2 each (including a premium of Rs 598 per equity share) or such higher issue price as may be determined as per the SEBI regulations. The total funds being proposed to be raised through the preferential route is around Rs 96 crore.

Goodluck Defence and Aerospace Private Limited is a private limited company incorporated on August 31, 2023. The company’s main object is to carry out the business of forging, machining, treatment and coating of steel, stainless and special steel, alloys or any other metal by open forging, die forging, robotic forging or any other method. The company has not started its business yet. The part proceeds to the tune of Rs 40 crore from the proposed preferential issue of the parent company will be used as an investment in this subsidiary.

On Wednesday, shares of Goodluck India Ltd gained 1.17 per cent to Rs 631 per share with an intraday high of Rs 642 and an intraday low of Rs 613.20. The stock also made a new 52-week high of Rs 642 per share.

Goodluck India Ltd is an engineering conglomerate engaged in the business of manufacturing and selling engineering products such as sheets, pipes, engineering structures, fabricated structures, forgings, and automobile tubes. The company has a market cap of over Rs 1,700 crore and reported amazing numbers in its Quarterly Results (Q1FY24) and annual results (FY23).

The stock is up by 70 per cent year to date and gave multibagger returns of 1,500 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

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