From Rs 14.08 to Rs 22.77 per share in just 7 days: Penny Stock Hit 10 Per Cent Upper Circuit After Board Allocated 13,33,33,333 Shares To FIIs
The shares of the company saw a spurt in volume by more than 1.50 times on BSE and stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 10 per share.
On Monday, one of the Top Gainers on BSE, shares of Zee Media Corporation Limited hit a 10 per cent upper circuit and made a new 52-week high of Rs 22.77 per share from its previous closing of Rs 20.70 per share. The shares of the company saw a spurt in volume by more than 1.50 times on BSE and stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 10 per share. From Rs 14.08 to Rs 22.77 per share, the stock is up by 61.71 per cent in just 7 days.
The sudden surge in the company's stock price can be attributed to the proposed issuance of warrants. The company plans to offer up to 13,33,33,333 warrants at an issue price of Rs 15 per warrant, with a total value of Rs 200 crore. These warrants are fully convertible into equity shares at the same price. Notably, the warrants will be issued preferentially to non-promoter entities.
The subscription and allotment process requires an initial payment of 25 per cent with the remaining 75 per cent due within 18 months of warrant allotment upon exercising the conversion option. This strategic move has garnered significant interest from foreign institutional investors (FIIs), with UNICO Global Opportunities Fund Limited, AL Maha Investment Fund PCC - Onyx Strategy, and Ebisu Global Opportunities Fund Limited acquiring substantial shares in the company.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
About the Company
Zee Media Corporation Ltd (ZMCL), established in 1999, is a major player in the Indian news and broadcasting industry. With a presence across television and digital platforms, ZMCL reaches a vast audience. Their core business lies in broadcasting news and current affairs, along with regional entertainment channels.
ZMCL boasts an impressive network of 15 news channels, including a global channel, 3 national channels, and 11 regional channels. This extensive reach caters to viewers across India and provides diverse news coverage in multiple languages. Additionally, their digital platform, Zeenews.com, offers news in 9 languages, further expanding their reach to over 280 million users.
The company’s promoters bought 21,97,375 shares and increased their stake to 0.42 per cent in June 2024 compared to 0.07 per cent in March 2024. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.