14:30 Rights Issue: Penny Stock Under Rs 5 In Green As Board Approved The Allotment Of 18,03,66,825 Equity Shares

The stock is up by 49.5 per cent from its 52-week low of Rs 1.94 per share.

Today, shares of Advik Capital Ltd gained 1.05 per cent to Rs 2.90 per share from its previous closing of Rs 2.87. The stock’s 52-week high is Rs 4.10 and its 52-week low is Rs 1.94.

Additionally, Advik Capital Ltd announced a rights issue of up to 19,98,05,013 fully paid-up equity shares at Rs 2.50 per share, including a premium of Rs 1.50. The record date for the rights issue was September 12, 2024, and the entitlement ratio is 14:30. The rights issue period starts on September 24, 2024, and ends on October 04, 2024. Assuming a full subscription, the company's outstanding equity shares will increase from 42,81,53,600 to 62,79,58,613.

Following the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018, as amended, and other applicable laws, the Right Issue Committee met on October 17, 2024, to finalize the Basis of allotment for the Rights Issue approved by the Board on September 7, 2024. Following consultation with the Designated Stock Exchange (BSE Limited), Merchant Banker, and Registrar to the Issue, the Committee approved the allotment of 18,03,66,825 Fully Paid-up Equity shares of R 1 each to eligible applicants at a price of Rs 2.50 per Rights Equity share (including a premium of Rs 1.50 per share).

Earlier, Advik Capital strategically entered the supply chain financing market to expand its product offerings and support businesses across various sectors. Through a partnership with a prominent agri-product FMCG company, Advik Capital aims to provide tailored financial solutions, infrastructure development support, expert technical assistance, and a focus on sustainability. By mitigating dependency on existing product lines and diversifying its operations, Advik Capital seeks to enhance its ability to adapt to market fluctuations and ensure long-term, sustainable revenue visibility. The company is committed to advancing financial inclusion and supporting business growth, and looks forward to sharing updates on the positive impact of its supply chain financing initiative.

About the Company

Advik Capital, a Non-Banking Financial Company (NBFC) with a total assets of Rs 200 crore, is aiming to achieve the status of a Systematically Important Non-Banking Financial Company (SIB-NBFC) by 2025. To achieve this, the company is executing a comprehensive expansion strategy that includes enlarging its business offerings, exploring new-age sectors like healthcare, and strategically evaluating existing lines to improve overall performance. The company is also infusing additional resources to strengthen its operations and attract industry veterans with expertise in risk, operations, governance and technology.

According to Quarterly Results, the net sales increased by 49.2 per cent to Rs 227.90 crore, operating profit increased by 89.2 per cent to Rs 4.75 crore and net profit increased by 235.7 per cent to Rs 2.35 crore in Q1FY25 over Q1FY24. In its annual results (FY24), the company reported net sales of Rs 840 crore and net profit of Rs 6 crore.

The company has a market cap of Rs 177 crore and has delivered good profit growth of 121 per cent CAGR over the last 5 years. According to the shareholding pattern, the promoters of the company own 21.80 per cent and the public owns a 78.20 per cent stake in the company as of June 2024. The stock is up by 49.5 per cent from its 52-week low of Rs 1.94 per share. Investors should keep an eye on this micro-cap stock.

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