6,700 per cent multibagger returns: This cable manufacturing company allocated 2,03,74,980 preferential shares to Anand Rathi Global Finance, VLS Finance and 62 others!

Over a decade, the stock has soared from Rs 1.61 per share to Rs 110.67 per share, achieving multibagger returns exceeding 6,700 per cent.

Today, shares of Paramount Communications Ltd plunged 3.70 per cent to Rs 110.37 per share from its previous closing of Rs 114.16 with an intraday high of Rs 115.72 and an intraday low of Rs 108.88. The stock’s 52-week high is Rs 116.70 and its 52-week low is Rs 28.  

Paramount Communications Ltd produces a variety of wires and cables, including power cables, telecom cables, railway cables, and specialized cables. The company boasts a substantial client base, including esteemed organizations such as Larsen & Toubro, Steel Authority of India (SAIL), BSES, Bharat Heavy Electrical Ltd, Power Grid Corporation, BSNL, Tata Steel, Alcatel Lucent Enterprises, ISRO, Indian Railways, Indian Oil, NTPC, among others.

The board of directors, having received approvals from both the company's members and stock exchanges, allotted 2,03,74,980 equity shares at Rs. 66.50 each to pre-determined non-promoter entities, raising a total of Rs. 135.49 crores. Anand Rathi Global Finance Limited was allocated 15,00,000 shares, VLS Finance Limited was allocated 22,55,600 shares and the rest of the shares were allocated to 62 other investors.

By November 2023, there was an increase in the shareholding of Foreign Institutional Investors (FIIs) in the company. Between October and November 2023, FIIs acquired an additional 1,71,80,366 shares, resulting in their ownership rising from 0.52 per cent to 7.61 per cent.

These remarkable outcomes are supported by a robust order book totalling Rs 361 crore as of September 30, 2023. The portfolio is diversified across various sectors including power, railway, telecom, house wire, export, and EPC projects.

The company's shares exhibit a Return on Equity (ROE) of 21.2 per cent and a Return on Capital Employed (ROCE) of 14 per cent. The stock has delivered impressive returns, multiplying by 200 per cent within just one year and 1,175 per cent over three years. Over a decade, the stock has soared from Rs 1.61 per share to Rs 110.67 per share, achieving multibagger returns exceeding 6,700 per cent.

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