Penny stock under Rs 1: Company bags project worth 30 billion Dirham from UAE's Bloom Infra

The company's stock hits upper circuit today, and the trading volumes surged by over 6.77 times on the BSE.

Sharanam Infraproject & Trading Limited has entered into a strategic partnership with Bloom Infra LLC, a prominent real estate developer based in Abu Dhabi, United Arab Emirates. This agreement, effective from 29th March 2024, endows Sharanam Infraproject with exclusive rights to act as the trading entity for land associated with various development projects in Khalifa City B (Shakhbout City), which are managed by Bloom Infra LLC.

The aggregate value of the projects is estimated to be approximately AED 30 billion. Under the agreement, Sharanam Infraproject is poised to earn a trading fee ranging from 0.75 per cent to 1.25 per cent on transactions executed, which is expected to substantially augment our revenue streams and, by extension, enhance shareholder value.

This collaboration covers over 200 acres of prime real estate slated for significant development, reflecting the magnitude and potential of this initiative.

Also read Stock under Rs 30: Company Bagged Order Worth Rs 42,72,558 from Ministry of Electronics and Information Technology.

Following the announcement, shares of this micro-cap company rallied around 5 per cent today, reaching intraday highs of Rs 0.98 per share on the BSE. The shares commenced trading at Rs 0.98 per share, an increase compared to Tuesday's closing figure of Rs 0.94 per share. Its 52-week highs and lows are Rs 1.36 and Rs 0.62 per share respectively. Finally, the stock closed at Rs 0.98 per share on the BSE.

The market capitalisation of the company stands at Rs 11.76 crore. Additionally, the stock has delivered an impressive return of around 22.50 per cent in the past one month and has the potential to deliver multibagger returns in the future. The company has not yet released its Quarterly Results so far.

Sharanam Infraproject and Trading Limited, established in 1992, is a multifaceted real estate company active in land and building purchases, sales, leasing, construction, and retail building material supply. This encompasses buying, selling, sub-letting, managing, and renting flats, shops, and godowns and earning income through lease agreements.

Investors must keep this stock on their radar.