220 per cent multibagger returns its 52-week low and promoters increase stake: Board announces bonus shares!

The stock gave multibagger returns of 220 per cent from its 52-week low of Rs 75 per share.

Olatech Solutions Ltd announced that its board of directors has approved a bonus share issue in the ratio of 17:20, meaning that for every 20 fully paid-up equity shares of Rs 10 each held on the record date, shareholders will receive 17 bonus equity shares of Rs 10 each. The record date has been set as Monday, November 20, 2023.

This will increase the company's paid-up share capital from Rs 2,34,00,000 divided into 23,40,000 equity shares of Rs 10 each to Rs 4,32,90,000 divided into 43,29,000 equity shares of Rs 10 each.

 Additionally, the company's promoter, Amit Kumar Singh, increased his stake from 49.06 per cent to 50.43 per cent in the September quarter of fiscal year 2024.

Olatech Solutions Limited is engaged in the business of data centre, enterprise, telecom and IT software solutions in the operations support system and business support system (OSS and BSS) segment. The company's software solutions are offered under the registered trademark "Epiphany". The company has a market cap of over Rs 40 crore and reported amazing numbers in its half-yearly results and annual results.

On Friday, shares of Olatech Solutions hit a 5 per cent upper circuit to Rs 239.60 per share from its previous closing of Rs 228.20 per share. The stock also made a new 52-week high of Rs 239.60 per share with a spurt in volume by more than 2.08 times on BSE. The stock falls under the SME segment with a lot size of 2,000 shares.

The shares of the company have an ROE of 39.6 per cent and an ROCE of 53 per cent. The stock gave multibagger returns of 220 per cent from its 52-week low of Rs 75 per share. Investors should keep an eye on this micro-cap stock.

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