This RJ was Allotted 26,42,705 Shares in Small-Cap Stock, Surges Over 50% from Allotment Price; Promoters Also Allotted Shares
It’s noteworthy that RJ Corp Limited also holds a 26.75 per cent stake in Varun Beverages, a recognized multibagger.
The NSE benchmark Nifty50 index has shown resilience, recovering from lower levels to trade above the 24,900 mark, up by 0.24 per cent. In contrast, the broader markets have underperformed, with the Nifty Smallcap 100 index plunging over 1 per cent, highlighting the market's mixed sentiment. Despite this downturn in Small-Cap stocks, Ester Industries Ltd (EIL) is defying the broader market trend, showcasing impressive gains.
Ester Industries Ltd is engaged in the packaging films and specialty polymers industry. The company’s manufacturing facility is strategically located in Khatima, Uttarakhand, with a robust operational capacity that includes 105,000 TPA for BOPET (with a new capacity of 48,000 TPA in Telangana, which commenced operations in Q4 of FY23), 23,000 TPA for metallised films, and 30,000 TPA for specialty polymers. This expansion has fortified EIL’s position in the market, contributing to its recent performance surge.
On Monday, shares of EIL jumped over 9 per cent, surpassing the Rs 150 mark with an impressive trading volume of 33.61 lakh shares on the NSE. This performance starkly contrasts the broader market sentiment, where many small-cap stocks are struggling to find traction. EIL’s remarkable surge highlights its resilience and appeal among investors.
A key development that has fueled investor interest in Ester Industries is the involvement of RJ Corp Limited, a diversified conglomerate known for its dominance in the food and beverage sector under the leadership of Mr. Ravi Kant Jaipuria. In mid-February, RJ Corp Limited was allotted 26,42,705 shares of Ester Industries on a preferential basis at Rs 94.60 per share, alongside key promoters such as Mr. Arvind Singhania and the promoter group, Modi Rubber Ltd.
RJ Corp’s strategic investment underscores a significant vote of confidence in Ester Industries. It’s noteworthy that RJ Corp Limited also holds a 26.75 per cent stake in Varun Beverages, a recognized multibagger. This connection adds an extra layer of credibility to EIL’s growth prospects and attracts attention from savvy investors.
Since the preferential allotment in February, Ester Industries' stock has surged by an impressive 58.5 per cent in just seven months.
Disclaimer: The article is for informational purposes only and not investment advice