Multibagger electrical equipment stock hit back-to-back upper circuits & 52-week highs as company announces fundraising of Rs 71.48 crore through preferential issue!

The stock gave multibagger returns of 234 per cent from its 52-week low of Rs 36.53 per share.

Power & Instrumentation (Gujarat) Limited, (NSE – PIGL, BSE – 543912) one of the leading players in the electrical contracting and equipment industry, has announced the substantial fundraising of Rs 71.48 crore through preferential equity shares & warrants, acquisition of the controlling stake in peaton electrical company limited. These decisions were taken during the recent board meeting and are subject to necessary approvals.

Issue of Equity Shares: The board has decided to issue up to 34,39,000 Equity Shares of ₹ 10 each at an issue price of Rs 83.75 per share, including a premium of Rs 73.75. amounting to Rs 28.80 crore. The shares will be issued to the Non-Promoter Group on a preferential basis.

Issue of Equity Warrants: The company is issuing 50,96,000 Equity Warrants at Rs 83.75 per warrant amounting to Rs 42.68 crore. These warrants will be issued to both the Promoter Group and Non-Promoter Group on a preferential basis. Among the 50,96,000 Equity warrants, 41,50,000 are issued to the promoter group and the remaining 9,46,000 are issued to the non-promoter group

Acquisition of Controlling Stake in Peaton Electrical Company Limited (PECL): The company has decided to acquire a controlling stake in Peaton Electrical Company Limited, a manufacturer specializing in Electrical Panels, Compact Substations, and Bus Trunking Systems. This strategic acquisition aims to expand PIGL's footprint in the electricals market. Currently, PIGL holds a 15.23 per cent stake in PECL and plans to increase its shareholding to up to 60 per cent. The acquisition will be based on the valuation of PECL, with the consideration to be discharged per the share purchase agreement to be executed. These strategic decisions underline PIGL's commitment to expanding its market presence and enhancing shareholder value. The company remains focused on leveraging new opportunities to drive growth and profitability.

Earlier, PIGL secured a Rs 20,93,26,922 contract from Ahmedabad International Airport Ltd., a subsidiary of the Adani Group, to construct a substation for Terminal 2 of Sardar Vallabhbhai International Airport in Ahmedabad. This collaborative project mandates PIGL to design and build the substation by specified requirements within a tight four-month timeframe commencing May 7, 2024. Upon completion, this substation is anticipated to significantly augment the airport's infrastructure and operational efficiency.

Power & Instrumentation (Gujarat) Ltd, founded in 1975, is a one-stop shop for all your electrical needs. They specialize in designing, installing, maintaining, and repairing electrical systems for industrial and commercial clients. Their services include substations, transformers, generators, power distribution panels, lighting systems, and backup power solutions. They've worked with a wide range of clients in sectors like government, healthcare, telecom, and major corporations.

On Tuesday, the shares of the company were locked in a 2 per cent upper circuit to Rs 122 per share from its previous closing of Rs 119.65. The stock also made a fresh 52-week high of Rs 122 per share. The stock gave multibagger returns of 234 per cent from its 52-week low of Rs 36.53 per share. 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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