Debt-free multibagger penny stock under Rs 5 hit upper circuit as company sanctioned term sheet for Rs 1,964.90 million for Man Stainless Steel Tubes Ltd
The stock gave multibagger returns of 345 per cent in just 1 year and a whopping 3,375 per cent in 5 years.
On Wednesday, the shares of Sunshine Capital Ltd hit a 5 per cent upper circuit to Rs 2.43 per share from its previous closing of Rs 2.32. The stock’s 52-week high is Rs 4.13 while its 52-week low is Rs 0.46. The company has a market cap of over Rs 250 crore.
Sunshine Capital Ltd informed that the company have sanctioned an amount of Rs 1,964.90 million and signed a term sheet with Man Stainless Steel Tubes Limited (MSSTL) towards their development of a state-of-the-art manufacturing unit-2 for Non-API Electric Resistance Welded (ERW) Carbon Steel Pipes in Kathua, Jammu & Kashmir. The proposed installed capacity of this manufacturing unit is 2,50,000 MT per annum.
The financial facility sanctioned will be crucial in part-financing the capital expenditure required for the construction and development of this manufacturing unit. The total project cost is estimated at Rs 2,807 million. The sanctioned facilities include a Rupee Term Loan (RTL) of up to Rs 1,964.90 million and a Capex Letter of Credit (LC) of Rs 1,450 million - acting as a sub-limit of the RTL facility. The project is projected to be completed by April 2025, with a loan tenure of 9 years, including a 12-month construction period and a 12-month moratorium on repayment.
About Sunshine Capital Ltd
Sunshine Capital Ltd, established in 1989, navigates the financial realm through share trading, investing, and financing activities. Recognized as a non-deposit non-systematically important non-banking financial company, it holds its ground in India's credit reporting sphere with registrations across all four RBI Authorized CICs. According to Quarterly Results, the company reported net sales of Rs 2.88 crore in Q1FY25 compared to net sales of Rs 1.97 crore in Q4FY24. The company reported s turnaround net profit of Rs 2 crore in Q1FY25 compared to a net loss of Rs 48.12 crore in Q4FY24, an increase of over 100 per cent.
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Sunshine Capital Ltd has achieved a debt-free status by successfully raising funds through a preferential issue of equity shares, solidifying its financial position for future growth. The company is strategically expanding into the retail loan segment, offering home loans and education loans, particularly targeting students pursuing studies abroad and seeking partnerships with international universities. Recognizing India's potential in AI, Sunshine Capital Ltd is investing in early-stage tech and AI start-ups to capitalize on the growing technological advancements and position itself as a leader in the AI revolution.
Sunshine Capital Ltd. is offering shareholders a double treat with a stock split and bonus shares. The company's board of directors approved a 10:1 stock split, reducing the face value of each share from Rs. 10 to Rs. 1. This effectively increases the number of shares outstanding by 10 times. Additionally, shareholders will receive a 7:1 bonus issue, meaning they'll get 7 additional shares for every 1 share they currently hold. The ex-date for bonus shares & stock split was Monday, March 11, 2024.
The promoters of the company own 19.03 per cent and the public holds 80.98 per cent stake as of July 2024. The stock gave multibagger returns of 345 per cent in just 1 year and a whopping 3,375 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.
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