4:1 bonus shares & Rs 2,326 crore order book: Board of this multibagger engineering company allotted 20,19,23,890 shares to promoters & non-promoters!
The stock gave multibagger returns of 135 per cent in 1 year and a whopping 860 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Salasar Techno Engineering Ltd (STEL)’s Board approved allotted equity shares and convertible warrants. 11,57,43,890 equity shares with a face value of Rs 1 each were issued to the "Non-Promoter, Public Category" as detailed in Annexure I, priced according to SEBI ICDR Regulations. This increases the company's fully paid-up capital to Rs 169,42,70,290 consisting of 1,69,42,70,290 equity shares. These new shares have the same rights as existing shares.
Additionally, 8,61,80,000 fully convertible warrants were issued, allowing holders to subscribe to one Rs 1 equity share per warrant. These warrants were offered to both "Promoter" and "Non-Promoter, Public Category" investors listed in Annexure II, with the price determined by SEBI ICDR Regulations being 25 per cent of the issue price upfront according to SEBI ICDR Regulations. each of the warrants, so allotted, is convertible into or exchangeable for one fully paid-up equity share having a face value of Rs 1 on payment of the balance consideration i.e. 75 per cent of the warrant issue price from the allottees within 18 months from the date of allotment of these warrants.
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STEL, established in 2006, acts as a single source for customised steel infrastructure solutions in India. They offer comprehensive services encompassing engineering, design, fabrication, galvanization, and installation. Their product range includes various towers (telecom, power transmission, lighting, etc.), substations, solar structures, railway electrification components, bridges, and custom steel structures. Additionally, STEL acts as an EPC contractor, undertaking complete project management for rural electrification, power lines, and solar plants. As a leading manufacturer with a substantial production capacity, they've supplied numerous structures across India and internationally, solidifying their position as a prominent player in infrastructure development.
The company has an order book of Rs 2,326 crore as of December 31, 2023, out of which Rs 1,879 crore are domestic EPC orders, Rs 221 are international EPC orders, orders under heavy steel structure division are worth Rs 110.7 crore, Monopoles orders are worth Rs 72.1 crore and exports orders (telecom towers and poles) are worth Rs 43.2 crore.
Salasar Techno Engineering Ltd (STEL) has secured two major contracts. In a joint venture with Rail Vikas Nigam Ltd (RVNL) where STEL holds a 49 per cent stake, they won a Rs 173.99 crore project from Madhya Pradesh Power Transmission Company Limited (MPPTCL). Additionally, STEL secured a significant Rs 1,033.78 crore contract from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).
According to Quarterly Results (Q3FY24), the net sales increased by 26.32 per cent to Rs 304.35 crore and net profit increased by 56.75 per cent to Rs 167.10 crore compared to Q3FY23 while in nine-month results (9MFY24), the net sales increased by 18.43 per cent to Rs 841.10 crore and net profit increased by 40.89 per cent to Rs 35.96 crore compared to 9MFY23. As of December 2023, promoters own 63.07 per cent, FIIs own 8.85 per cent and the public owns 28.08 per cent.
The company issued bonus shares in a 4:1 ratio to its shareholders on February 1, 2024 (ex-date). This means that for every one share a shareholder held, they received four additional shares. Additionally, the company distributed a dividend of Rs 0.10 per share on September 15, 2023 (ex-date). The stock gave multibagger returns of 135 per cent in 1 year and a whopping 860 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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