20:119 Rights Issue & 1:1 Bonus Share: LIC-backed multibagger penny stock at Rs 4.74 hits back-to-back upper circuits with heavy volume!

The stock is up by 89.6 per cent from its 52-week low of Rs 2.50 per share & gave multibagger returns of 675 per cent in just 3 years and a whopping 1,200 per cent in 5 years.

Today, shares of Integra Essentia Ltd, a multibagger stock from the FMCG sector, supported by the insurance giant Life Insurance Corporation (LIC) (owns 1.06 per cent); were locked in 5 per cent upper circuit to Rs 4.74 per share from its previous closing of Rs 4.52. In the recent trading sessions, the stock has been hitting back-to-back upper circuits. The shares of the company saw a spurt in volume by more than 3 times on BSE.  

Integra Essentia Limited, a company encompassing both the Agro and Infrastructure business sectors, recently received a substantial boost with fresh orders totaling Rs 210 million, signifying a positive turn for the company's growth. This windfall includes significant orders for High-Tensile TOR Steel in the Infra segment from Arochan Projects Pvt Ltd, solidifying Integra's presence in the infrastructure industry and ensuring steady growth. The Agro segment witnessed continued success with repeat orders from established clients like Sarveshwar Foods Ltd and Sarveshwar Overseas Ltd, underlining Integra's strong order book and customer confidence in their high-quality agricultural products. It's noteworthy that all these orders are classified as domestic spot orders, requiring immediate fulfilment within the current financial year's second quarter (FY 2024-25).

Additionally, the Board is raising Rs 50 crore through a rights issue by offering 1,52,634,538 new shares at Rs 3.25 each (including a premium of Rs 2.25). Existing shareholders who held at least 20 shares on June 1, 2024 (record date) will be entitled to buy additional shares at a ratio of 20:119 (20 rights shares for every 119 existing shares). The rights issue window is open from June 11 to June 25, 2024 (with potential extension), and if fully subscribed, could increase the company's outstanding shares by over 16.8 per cent, bringing the total from 91,40,66,006 to 1,06,76,90,544. This translates to a potential capital raise of Rs 49.93 crore.

Furthermore, the company received its first-ever order to supply 500 metric tons of rice, valued at approximately Rs 14.25 million, to the prestigious ITC Group's Agri Division. This initial order comes with specific quality requirements and a tight 15-day delivery window. It's particularly noteworthy because ITC Group is a major player in the Indian market, with a diversified business including FMCG, Hotels, and a leading Agri-Business Division. This division is heavily involved in the export and domestic trading of various food products, including rice, wheat, and other grains, making it a significant potential customer for Integra Essentia.

Also Read: Promoter bought 73,000 shares of multibagger rice selling stock with 6,750 per cent returns; Board likely to raise funds via preferential issue!

About Integra Essentia Ltd

Integra Essentia Limited (IEL) is a multifaceted company that caters to the essential needs of modern life. Their business spans across four core sectors: food, clothing, infrastructure, and energy. Within these sectors, IEL offers a wide range of products and services, including agro products, textiles and garments, construction materials, renewable energy equipment, and more. They are committed to providing these essentials at an affordable cost to the end user. IEL is particularly focused on establishing itself as a leader in the food industry. They are investing heavily in this sector to ensure they can meet the growing demands of society and the nation.

Beyond food, IEL is also placing a strong emphasis on supplying bulk and speciality materials to support India's infrastructure development needs. By combining a focus on essential goods with a commitment to improving living standards, IEL aims to play a significant role in shaping the future of India. Additionally, IEL recently acquired CHATEAU INDAGE Winery as part of its long-term strategy to expand its presence in the consumer goods supply chain. This acquisition reflects their recognition of the growing wine market in India, driven by factors like rising disposable income and increased urbanization. IEL is a well-managed company with a team of experienced professionals at the helm.

According to Quarterly Results (Q4FY24), the net sales increased by 50.4 per cent to Rs 93.31 crore and net profit increased by 733.8 per cent to Rs 5.92 crore compared to Q3FY24. In its annual results, the net sales increased by 50.4 per cent to Rs 277.27 crore and net profit increased by 131.4 per cent to Rs 15.28 crore in FY24 compared to FY23.

The company in its board meeting held on January 13, 2024, considered and approved the allotment of 45,70,33,003 bonus equity shares to the existing shareholders in the ratio of 1:1, the same has been allocated to the shareholders on January 13, 2024. Expenses incurred with the Increase in authorised capital & bonus issue of Rs 90.25 lakh have been capitalised and adjusted from other equity during the year ended 31 March 2024.

The stock is up by 89.6 per cent from its 52-week low of Rs 2.50 per share & gave multibagger returns of 675 per cent in just 3 years and a whopping 1,200 per cent in 5 years.Investors should keep an eye on this micro-cap stock.

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