LIC-backed multibagger penny stock at Rs 3.57 - Board announces rights issue in the ratio 20:119; Rights issue opening date is Tomorrow, June 11, 2024

The stock is up by 42.8 per cent from its 52-week low of Rs 2.50 per share & gave multibagger returns of 485 per cent in just 3 years and a whopping 900 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 3.57 per share from its previous closing of Rs 3.40.

Integra Essentia Ltd is planning a rights issue to raise up to Rs 50 crore. This will be done by issuing up to 152,634,538 new equity shares, each with a face value of Re 1. The rights issue price is set at Rs 3.25 per share (including a premium of Rs 2.25 per share), for a total potential raise of Rs 49.93 crore. The rights issue opening date is Tuesday, June 11, 2024; the last date for on-market renunciation of rights entitlement is Thursday, June 20, 2024 and the rights issue closing date is Tuesday, June 25, 2024.

Existing shareholders who hold 20 equity shares on the record date of June 1, 2024, will be entitled to receive rights to purchase an additional 119 new shares. This translates to a right entitlement ratio of 20:119.

The rights issue period will be open for subscriptions from June 11, 2024, to June 25, 2024, with the possibility of extension by the company's board or a designated committee. If the issue is fully subscribed, the company's total outstanding shares will increase from 91,40,66,006 to 1,06,76,90,544. This represents a potential growth of over 16.8 per cent in the company's equity base.

Integra Essentia just secured a significant opportunity that could lead to a long-term partnership. 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.

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About Integra Essentia Ltd

Integra Essentia Limited (IEL) is a diversified company providing essential goods and services for modern life across Food (including Agro products), Clothing (Textiles and Garments), Infrastructure materials and services, and Renewable Energy equipment. They aim to serve society and be a leading player, especially in Food Essentials, by offering these products at a reasonable cost. IEL is also committed to supplying materials and services for India's infrastructure needs. Additionally, they offer a wide range of products to enhance lifestyles, including health and nutrition products, clothing, and bulk materials. To achieve its growth strategy, IEL recently acquired a winery and a majority stake in a beverage company, capitalizing on the growing markets for consumable goods, wine, beer, and whiskey.

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 42.8 per cent from its 52-week low of Rs 2.50 per share & gave multibagger returns of 485 per cent in just 3 years and a whopping 900 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.