Multibagger penny stock under Rs 25 announces rights issue up to Rs 50,00,00,000; BOD extended the closing date of the rights issue offer period till April 18, 2024

The stock gave multibagger returns of 153.99 per cent returns in just 1 year and a whopping 742.91 per cent in 3 years.

In a recent development, the Rights Issue Committee of Mishtann Foods Ltd, appointed by the Company's Board of Directors, has decided to extend the closing date of the rights issue offer period from April 16, 2024, to April 18, 2024. This means that shareholders now have until April 18 to participate in the rights issue. The issue officially began on April 2, 2024, and the last date for market renunciation is set for April 12, 2024. This extension provides shareholders with more time to take advantage of the rights issue opportunity.

The company is offering its existing shareholders the opportunity to buy new equity shares for Rs 15 each, totaling Rs 49,81,93,545. This offer, known as a rights issue, gives shareholders one new share for every 31 shares they currently hold. The issue price includes a premium of Rs 14 per share. This means the issue price is fifteen times the face value of the shares. Shareholders as of March 20, 2024, are eligible to participate.

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Mishtann Foods Ltd, established in 1981, processes, packages, and sells various food products like Basmati rice, wheat, pulses, and salt. They offer both branded and unbranded options, with "Pristino" and "Snowflake" being their prominent Basmati rice brands. Their processing plant in Himatnagar, Gujarat, boasts a high capacity and they have a strong distribution network reaching over 70,000 retailers through 15 super stockists. They also have a significant presence in the hotel and restaurant industry.

The company reported significant financial growth in Quarterly Results (Q3FY24), with revenue from operations surging 101.86 per cent to Rs 330.52 crore, driven by strong demand. This translated to a substantial increase in profitability, with EBITDA rising 326.47 per cent to Rs 96.51 crore and PAT soaring 579.20 per cent to Rs. 93.05 Cr. Consequently, both EBITDA and PAT margins witnessed significant improvements, reaching 29.20 per cent and 28.15 per cent respectively.

Today, shares of Mishtann Foods Ltd jumped by 0.10 per cent to Rs 20.85 per share from its previous closing of Rs 20.83 in the early morning. The stock’s 52-week high is Rs 26.50 and its 52-week low is Rs 7.09. The stock gave multibagger returns of 153.99 per cent returns in just 1 year and a whopping 742.91 per cent in 3 years. This FMCG Small-Cap stock should be kept under the radar.

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