From Upper Circuit & 52-Week High To Lower Circuit: Penny Stock Under Rs 5; Board Announces 4:1 Rights Issue To Fund Company’s Growth
The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 0.99 per share and a whopping 1,950 per cent in 5 years.
On Wednesday, shares of NHC Foods Ltd hit a 5 per cent upper circuit and made a new 52-week high of Rs 3.37 per share from its previous closing of Rs 3.21 per share. The company's shares, which had hit a 52-week high and the upper circuit earlier in the day, plunged 5 per cent to Rs 3.05 at the closing bell. The stock saw a massive 5.40 times surge in trading volume on the BSE.
NHC Foods Limited, a prominent merchant exporter of agricultural commodities and spices, is launching its Rights Issue on December 5, 2024. The company plans to raise Rs 4,742 lakh through this initiative to strengthen its working capital and repay secured loans, ensuring a path toward enhanced profitability. Eligible equity shareholders can subscribe to the Rights Issue at Rs 1 per Rights Equity Share. The offering is structured in a 4:1 ratio, meaning shareholders will receive four Rights Equity Shares for every one fully paid-up equity share they hold as of the record date, November 26, 2024.
This Rights Issue presents a golden opportunity for shareholders to boost their involvement and equity stake in the company. The promoters of NHC Foods aim to foster greater engagement and benefits for public shareholders, encouraging them to capitalize on this strategic move. Investors have the flexibility to renounce their Rights Entitlement from December 5, 2024, to December 12, 2024, while the subscription window remains open until December 18, 2024.
Key highlights of the Rights Issue include the offering price of Rs 1 per Rights Equity Share, the issue size of Rs 4,742 lakh, and a closing price of Rs 3.21 as of December 3, 2024. This initiative offers a compelling investment opportunity for shareholders to enhance their stake in NHC Foods at a favourable price while supporting the company’s ambitious growth objectives.
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About the Company
NHC Foods (NHC) has been a trusted name in the industry since 1960 and is a three-star merchant export house and a leading exporter of premium agricultural commodities and spices. Renowned globally for its expertise in the merchant export of Spices, Food Grains, Oil Seeds, Pulses, and Dry Fruits. NHC proudly serves over 30 countries with its signature brands such as Indi Bite, Eat'mor, and Saaz. With a strong focus on technology upgrades, process improvements, and market diversification, NHC is strategically expanding its footprint both in India and new international markets.
Earlier, the shares of the company underwent a stock split where each existing equity share with a face value of Rs 10 will be subdivided into 10 shares with a face value of Re 1 each. This means shareholders will receive 10 new shares for every 1 share. The ex-date for the stock split was Monday, July 22, 2024.
The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 0.99 per share and a whopping 1,950 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.