LIC-backed multibagger penny stock at Rs 3.72 hit upper circuit today; Board likely to announce rights issue!

The stock is up by 46 per cent from its 52-week low of Rs 2.55 per share & gave multibagger returns of 455 per cent in just 3 years and a whopping 880 per cent in 5 years.

Integra Essentia Ltd informed that the meeting of the Board of Directors of the company is scheduled to be held on Tuesday, May 28, 2024, at the Registered office of the Company, inter-alia:

i. To consider and approve various matters relating to the rights issue including terms and conditions such as the determination of the rights issue price and related payment mechanism, rights issue size, rights entitlement ratio, the record date and timing of the rights issue and other matters incidental or connected therewith in accordance with the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended and other applicable laws.

This is in furtherance to the outcome of the meeting of the Board of Directors of the company dated November 27, 2023, and subsequent shareholder approval via Postal Ballot, Results dated December 29, 2023, and Draft Letter of Offer dated February 26, 2024, filed with the stock exchanges for obtaining requisite in-principal approval for the proposed right issue.

ii. To consider and approve any other item(s) with the permission of the chair.

Today, shares of Integra Essentia Ltd, a multibagger stock from the FMCG sector, supported by the insurance giant Life Insurance Corporation (LIC) (owns 1.06 per cent); were locked in 2 per cent upper circuit to Rs 3.72 per share from its previous closing of Rs 3.65. The company's shares saw a spurt in volume by more than 3 times on BSE.

Additionally, yesterday, the company secured its first-ever order to supply 500 metric tons (MT) of Rice to the prestigious ITC Group's Agri Division. This initial order, valued at approximately INR 14.25 million, holds the potential for Integra Essentia to establish a long-term partnership as a supplier for the ITC conglomerate. The order specifies that the rice must meet specific quality requirements and be delivered within the next 15 days.

For some context, ITC Group is a well-established conglomerate in India with a diversified portfolio across various sectors including FMCG, Hotels, and Agri-Business. It's worth noting that ITC's Agri-Business Division is one of the country's leading integrated players, heavily involved in the export and domestic trading of food grains (including rice, wheat, wheat flour, pulses, barley, and maize), feed ingredients (like soya meal), processed fruits (including fruit purees, concentrates, IQF/frozen fruits, and organic products), coffee, and marine products (including shrimps and prawns).

Also Read: Rs 4,700 crore order book & FIIs increase stake: This multibagger railway telecom company bags new order worth Rs 17,21,47,870 from DRDO

About Integra Essentia Ltd

Integra Essentia Limited (IEL) is a diversified company providing essential goods and services for modern life across Food (including Agro products), Clothing (Textiles and Garments), Infrastructure materials and services, and Renewable Energy equipment. They aim to serve society and be a leading player, especially in Food Essentials, by offering these products at a reasonable cost. IEL is also committed to supplying materials and services for India's infrastructure needs. Additionally, they offer a wide range of products to enhance lifestyles, including health and nutrition products, clothing, and bulk materials. To achieve its growth strategy, IEL recently acquired a winery and a majority stake in a beverage company, capitalizing on the growing markets for consumable goods, wine, beer, and whiskey.

According to quarterly results (Q4FY24), the net sales increased by 50.4 per cent to Rs 93.31 crore and net profit increased by 733.8 per cent to Rs 5.92 crore compared to Q3FY24. In its annual results, the net sales increased by 50.4 per cent to Rs 277.27 crore and net profit increased by 131.4 per cent to Rs 15.28 crore in FY24 compared to FY23.

The company in its board meeting held on January 13, 2024, considered and approved the allotment of 45,70,33,003 bonus equity shares to the existing shareholders in the ratio of 1:1, the same has been allocated to the shareholders on January 13, 2024. Expenses incurred with the Increase in authorised capital & bonus issue of Rs 90.25 lakh have been capitalised and adjusted from other equity during the year ended 31 March 2024.

The stock is up by 46 per cent from its 52-week low of Rs 2.55 per share & gave multibagger returns of 455 per cent in just 3 years and a whopping 880 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.