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Penny stock under Rs 2 hit upper circuit as company signs MoU worth USD 12.5 million with Government of Liberia
Kiran Shroff

Penny stock under Rs 2 hit upper circuit as company signs MoU worth USD 12.5 million with Government of Liberia

The stock is up by 46.5 per cent from its 52-week low of Rs 1.57 per share and it is trading at 0.25 times its book value.

KBC Global Limited informed that a memorandum of understanding (MoU) has been signed between KBC International Limited, Ghana, and the Liberia Special Economic Zone Authority (LSEZA). The LSEZA is a government entity established under the Special Economic Zone Act, of 2017, with its registered office in Monrovia, Liberia. This MoU paves the way for the construction and development of residential building complexes, low-cost housing, and commercial spaces within the SEZ, with an estimated cost of USD 12.5 million. The project is slated to begin in the second quarter of 2025 and is anticipated to be completed within three years. Notably, KBC International Limited, Ghana, is a drop-down subsidiary of KBC Infrastructure Limited, UK, which is itself a wholly owned subsidiary.

Additionally, the company has announced that it has successfully resolved a default with Capri Global Capital Limited. The company had an outstanding balance of Rs15.83 crore as of June 30, 2024, of which Rs 0.66 crore was classified as a default. KBC Global has fully repaid the defaulted amount and has secured a waiver of non-financial penal interest through a Memorandum of Understanding with Capri Global Capital Limited. The remaining outstanding balance is now Rs 13.50 crore. This positive development is expected to accelerate the construction of KBC Global's projects, Hari Vasant and Hari Aakruti Phase II.

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About the Company

KBC Global Ltd is a real estate company established in 2007 with a focus on construction, development, and civil contracting. As a part of the Karda Group, KBC Global specializes in residential and commercial real estate projects, ranging from 1BHK apartments to luxury penthouses. The company operates under a business model that involves acquiring properties, forming joint ventures, marketing and selling projects, and executing civil contracting projects. KBC Global has several ongoing projects, including Hari Vasant Twin Towers, Hari Kunj Mayflower, Karda Highstreet, Hari Aangan, and Hari Sanskruti. In FY23, the company successfully delivered 90 units with a total area of 95,033 square feet. Additionally, KBC Global's subsidiary, KBC International Limited, has expressed interest in partnering with the Federal Housing Authority in Nigeria to develop low-cost housing projects in Africa.

The company has a market cap of Rs 335 crore. On Monday, shares of KBC Global Ltd hit a 5 per cent upper circuit to an intraday high of Rs 2.03 per share from its previous closing of Rs 1.96 per share. The stock is up by 46.5 per cent from its 52-week low of Rs 1.57 per share and it is trading at 0.25 times its book value.

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

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