LIC-backed multibagger penny stock at Rs 3.89 - Board announces rights issue in the ratio 20:119; Check price, record date and eligibility

The stock is up by 52.5 per cent from its 52-week low of Rs 2.55 per share & gave multibagger returns of 500 per cent in just 3 years and a whopping 925 per cent in 5 years.

Integra Essentia Ltd is planning a rights issue to raise up to Rs 50 crore. This will be done by issuing up to 152,634,538 new equity shares, each with a face value of Re 1. The rights issue price is set at Rs 3.25 per share (including a premium of Rs 2.25 per share), for a total potential raise of Rs 49.93 crore.

Existing shareholders who hold 20 equity shares on the record date of June 1, 2024, will be entitled to receive rights to purchase an additional 119 new shares. This translates to a right entitlement ratio of 20:119.

The rights issue period will be open for subscriptions from June 11, 2024, to June 25, 2024, with the possibility of extension by the company's board or a designated committee. If the issue is fully subscribed, the company's total outstanding shares will increase from 91,40,66,006 to 1,06,76,90,544. This represents a potential growth of over 16.8 per cent in the company's equity base.

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); gained 0.78 per cent to Rs 3.89 per share from its previous closing of Rs 3.86. The company's shares saw a spurt in volume by more than 1.52 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 maise), 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).

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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 52.5 per cent from its 52-week low of Rs 2.55 per share & gave multibagger returns of 500 per cent in just 3 years and a whopping 925 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.