4:1 bonus share & fund rising worth Rs 8,06,40,00,000 for business expansion: Multibagger stock gained 80 per cent in just 1 week with Rs 1,420.27 crore order book; hit upper circuit & 52-week high!

The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 750 per cent in 3 years.

The stock market ended the day in the red today with the BSE Sensex Index down 0.51 per cent and the NSE Nifty-50 Index down 0.47 per cent. Bucking the market trend, a multibagger penny stock skyrocketed 10 per cent upper circuit to Rs 120.93 per share.

The stock also made a fresh 52-week high of Rs 120.93 per share, surging from Rs 109.94 with 2.17x volume, making it one of the day's Top Gainers. At the closing bell, shares of the company were trading at Rs 120.19 per share, up 9.32 per cent.

The stock name is SALASAR TECHNO ENGINEERING LTD (STEL).

The company plans to raise Rs 806.4 crore to fuel its growth and bolster its finances. This will involve issuing up to 39 crore equity shares to non-promoters at a premium price, totalling Rs 280.8 crore and issuing up to 73 crore convertible warrants to promoters and non-promoters at a premium price, totalling Rs 525.6 crore. Both issuances require shareholder and regulatory approval. The preferential allottees (both Promoter and Non-Promoter, Public Category) will get 4 bonus shares for each equity share and warrant they receive, due to a pre-determined issue price and an upcoming bonus issue on February 1, 2024.

North Star Opportunities Fund will be allocated 5,13,75,000 shares, Intuitive Alpha Investment Fund will be allocated 75,00,000 shares, NAV Capital VCC-NAV Capital Emerging Star Fund will be allocated 50,00,000 shares, Tano Investment Opportunities Fund will be allocated 50,00,000 shares, Coeus Global Opportunities Fund will be allocated 6,50,00,000 shares, Vespara Fund Limited will be allocated 5,00,00,000 shares and Elara India Opportunities Fund will be allocated 5,00,00,000 shares (The number of shares mentioned will be after allotment of bonus issue of shares).

Salasar Techno Engineering Ltd (STEL), a renowned player in engineering and infrastructure solutions, has established a notable presence in the railway and power sectors, offering comprehensive EPC services and boasting a portfolio of completed projects along with a promising order book for the future. The company's journey in these sectors began with securing contracts for transmission lines, substations, and distribution lines, totalling around Rs 731.03 crore, awarded by esteemed power sector PSUs and Indian Railways, which solidified its expertise and standing.

Leveraging its extensive experience and proven track record, STEL has secured significant contracts valued at Rs 2,516.43 crore in recent years from Indian Railways and various power sector PSUs, indicating its continuous growth trajectory. Positioned for further expansion in the railway and power sectors, STEL's commitment to innovation, quality, and customer satisfaction underscores its potential contribution to India's infrastructure development.

Additionally, as a successful bidder for contracts worth Rs. 979.37 crore under the Government of India’s Revamped Distribution Sector Scheme (RDSS), the company continues to focus on enhancing distribution infrastructure for loss reduction. Categorizing its order book into competitive and continuous regular business orders, STEL currently holds unexecuted orders worth Rs. 1,420.27 crore from competitive orders in the railway and power sectors, supplemented by regular business orders from trusted telecom sector customers, amounting to approximately Rs 420 crore annually.

Results: According to the Quarterly Results, the net sales increased by 6.42 per cent to Rs 275.35 crore and the net profit increased by 20.5 per cent to Rs 9.05 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 14.5 per cent to Rs 537.21 crore and the net profit increased by 29.5 per cent to Rs 19.20 crore in H1FY24 compared to H1FY23.

The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 750 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.