3,700 per cent returns & FIIs increase stake: This multibagger iron & steel company plans mega capacity expansion worth Rs 13,10,00,00,000 in Maharashtra!

The stock gave multibagger returns of 1,430 per cent in 3 years and a whopping 3,760 per cent in a decade.

JTL Industries Limited, a fast-growing dynamic steel tube manufacturing company which specializes in producing ERW black pipes, pre-galvanized and galvanized steel pipes, large-diameter steel tubes & pipes, and hollow structures is planning to set up a mega project in Maharashtra. JTL, through its wholly owned subsidiary JTL Tubes Limited, is embarking on a groundbreaking journey with the establishment of a mega capacity augmentation project in Maharashtra.

JTL Industries Limited will secure Rs 1,310 crore to finance its ambitious Maharashtra expansion project through a multifaceted funding strategy. This includes contributions from both promoter and non-promoter groups, totalling Rs 810 crore, alongside a Rs 510 crore Qualified Institutional Placement (QIP). This strategic move underscores JTL's unwavering commitment to growth and diversification.

The promoter and promoter group are committed to contributing Rs 540 crore, while the public, non-promoter group will contribute Rs 270 crore. The remaining Rs 500s crore will be garnered through the QIP route.

1. Preferential Issuance of Warrants: Up to 3 crore warrants will be issued, 2 crore to promoters and group entities and 1 crore to non-promoters and the public, at a price of Rs 270 per underlying equity share. This translates to a total potential raise of Rs 810 crore.

2. Qualified Institutions Placement (QIP): The Company seeks to raise additional capital (up to Rs 500 crore) through a QIP offering, targeting qualified institutional investors. This issuance will be subject to shareholder and regulatory approval.

This strategic initiative serves as a testament to the company's resolute dedication to expansion and diversification, reflecting its proactive approach to shaping the future of the company marked by dynamic growth and success.

Today, shares of JTL Industries Ltd surged 4.65 per cent to Rs 251.95 per share from its previous closing of Rs 240.75. The stock also made a fresh 52-week high is Rs 251.95.

The company offers electric resistance welded steel pipes, tubes, hollow sections, and structural steel products. JTL Industries serves customers worldwide. The company's product offerings include Electric Resistance Welding (ERW) pipes, galvanized pipes, solar structures, etc. The company has a market cap of over Rs 3,600 crore. The stock has an ROE of 30.1 per cent and a ROCE of 34.6 per cent.

The company achieved significant growth in both its quarterly and half-yearly results for FY24. Net sales and net profit rose substantially, driven by record-breaking sales volume of structural steel tubes and pipes. Notably, the half-yearly net profit more than doubled compared to the previous year, highlighting the company's strong performance. Overall, FY24 has been a year of robust growth and record-breaking sales for the company.

In the September quarter (Q2FY24), FIIs increased their stake from 0.72 per cent to 2.67 per cent wherein BNP Paribas Arbitrage-ODI owns a 1.40 per cent stake in the company. Additionally, the shares ex-traded bonus shares in the ratio of 1:1 and final dividend of Rs 0.2 per share on September 07, 2023, and August 04, 2023, respectively.

The stock gave multibagger returns of 1,430 per cent in 3 years and a whopping 3,700 per cent in a decade. Investors should keep an eye on this Small-Cap stock.

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