Promoter allotted 50,77,778 warrants & Ashish Kacholia allotted 11,11,111 warrants of this NBFC company with 18,000 per cent multibagger returns!
The stock gave multibagger returns of 6,365 per cent in 3 years and a whopping 18,000 per cent in 5 years.
The Board of Directors of SG Finserve Limited has approved a significant expansion plan for the company. This plan includes an increase in the authorized share capital from ₹60 crore to ₹70 crore, which will be divided into 7 crore equity shares of ₹10 each. This change requires shareholder approval for a corresponding amendment to the Memorandum of Association.
In addition to the capital increase, the company will also be issuing up to 1 crore fully convertible warrants on a preferential basis. These warrants will be offered to both promoter and non-promoter categories at an issue price of ₹450 per warrant. The warrants can be converted into equity shares within 18 months from allotment, subject to shareholder and statutory approvals.
The total amount raised through the warrant issuance is expected to be up to ₹450 crore. The issue price of the warrants is determined by the Board in accordance with SEBI regulations.
Key details of the warrant issuance:
- Total number of warrants: 1,00,00,000
- Total amount raised: Up to Rs 4,50,00,00,000
- Issue price: Rs 450 per warrant
- Conversion period: 18 months from allotment
- Investors: Promoter - Rohan Gupta (50,77,778 warrants), Kitara PIIN 1103 (20,00,000 warrants), Ashish Rameshchandra Kacholia (11,11,111 warrants), RBA Finance and Investment Company (11,11,111 warrants), Marigold Partners (3,00,000 warrants), AGDG Enterprises LLP (2,00,000 warrants) and Anubhav Gupta Enterprises LLP (2,00,000 warrants).
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
About the Company
SG Finserve Ltd was previously known as Moongipa Securities Ltd, founded in 1994. It offers a diverse range of financial services, including broking, distribution, research, online trading, wealth management, investment banking, and insurance. However, the company discontinued all operations in the past. Recently, in September 2022, SG Finserve resumed its business activities with a focus on providing financing solutions to channel partners of Indian corporations. These partners, such as dealers, distributors, retailers, buyers, and others, can now access competitive financing rates of 10-13 per cent per annum to expand their businesses and support the growth of their business partners.
The company has a market cap of Rs 2,739 crore and has delivered good profit growth of 198 per cent CAGR over the last 5 years. The stock gave multibagger returns of 6,365 per cent in 3 years and a whopping 18,000 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: Wind Energy Stock Under Rs 80 In Focus As Company Announces India's Largest Wind Energy Order of 1,166 MW from NTPC Green Energy Ltd