Ashish Kacholia’s portfolio multibagger penny stock announces rights issue; Company successfully executes order worth Rs 39.04 crore from MPSEZL

The stock gave multibagger returns of 283 per cent from its 52-week low of Rs 5.87 per share.

Jyoti Structures Limited successfully completed all three transmission lines awarded by Mundra Port and Special Economic Zone Limited (MPSEZL). This project involved a comprehensive scope of work, including manufacturing and supplying the towers for the transmission lines, along with all necessary line materials. Jyoti Structures also handled the entire process from initial surveying and soil investigation to laying open cast and pile foundations, erecting the towers, stringing the lines, and finally commissioning each transmission line.

The initial contract value was Rs 39.04 crore. Furthermore, Jyoti Structures was entrusted with another project by MPSEZL for the Mundra Megaproject, which encompassed designing, supplying, erecting, and commissioning both 400 kV and 220 kV transmission lines on a turnkey basis. This project has also been finalized and successfully test-charged. This accomplishment highlights Jyoti Structures' extensive experience in the power transmission industry, encompassing not only supplying and testing towers but also delivering complete turnkey solutions for transmission lines, substations, and distribution projects across India and internationally.

Earlier, Jyoti Structures Ltd announced a rights issue of up to 11,64,20,710 new equity shares with a face value of Rs 2 each for a total of Rs 17,463.11 lakh (assuming full subscription). The rights issue is offered at Rs 15 per share (including a premium of Rs 13) to existing shareholders on the record date of March 21, 2024 in the ratio of 6 new shares for every 37 shares held. Investors will need to pay the full price of Rs 15 per share upfront. The issue opened for application on Monday, April 15, 2024 and closes on Monday, April 29, 2024. There is last date for renouncing rights on the market by April 24, 2024.

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Furthermore, the company secured two contracts: a Rs 290 crore EPC work for a 400 KV multi-circuit transmission line in Gujarat for Torrent PowerGrid Limited to be completed in 18 months and a USD 1.8 million (approx. Rs 15 crore) contract for the design and prototype testing of towers for the 400 kV double circuit Oman – UAE Interconnector Project to be completed in 6 months.

Today, shares of Jyoti Structures Limited plunged 3.64 per cent to Rs 22.50 per share from its previous closing of Rs 23.35 with an intraday high of Rs 23 and an intraday low of Rs 22.19. The stock’s 52-week high is Rs 34.08 per share while its 52-week low is Rs 5.87 per share. An Indian ace investor, Ashish Kacholia has expressed confidence in the future of a stock by purchasing 1,80,00,000 warrants for Rs 13.20 each, at a total cost of Rs 23.76 crore.

Jyoti Structures Limited was incorporated in 1974. The company is engaged in electricity, transmission, distribution and substation. The registered office of the company is in Mumbai. Jyoti Structures Ltd has a market capitalization of over Rs 1,800 crore. The stock gave multibagger returns of 283 per cent from its 52-week low of Rs 5.87 per share. Investors should keep an eye on this micro-cap stock.

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