Multibagger penny stock under Rs 100 hit 20 per cent upper circuit; Board likely to raise funds to accelerate business growth and to augment the financial resources of the company!

The stock is up by 580.6 per cent in just 3 years while the BSE Sensex Index is up by 45 per cent.

Salasar Techno Engineering Limited informed that the Board of Directors of the company is scheduled to be held on Thursday, January 25, 2024, at 11:30 A.M. at the Company's Unit-1 office situated at Khasra No. 265, 281-288, Parsaun-Dasna, Jindal Nagar, Distt. Hapur 201015, inter-alia, to transact the following businesses:

1. Proposal to raise funds, to accelerate business growth and augment the financial resources of the Company, by way of the issue of one or more instruments including Equity Shares, Convertible or Non-Convertible Securities of any description or warrants or debt securities, through preferential issue, private placements, rights issue or any other methods or combination thereof as may be permitted under applicable laws and subject to all necessary approvals, and to appoint requisite intermediaries required for this purpose.
2. To increase the authorized share capital of the company and consequent amendments in the Memorandum and Articles of Association of the company, if any.  
3. To seek members' approval wherever applicable by means of passing the requisite resolution(s) for the above-said board decisions and other matters connected therewith and/or incidental thereto.

The stock market ended the day in the red today with BSE Sensex Index down 0.36 per cent and NSE Nifty-50 Index down 0.23 per cent. Bucking the market trend, a multibagger penny stock skyrocketed 20 per cent to Rs 95.15 on the NSE, surging from Rs 79.30 with over 3x volume, making it one of the day's Top Gainers.

Established in 2006 as a tower manufacturer, Salasar Techno Engineering Limited has emerged as a fast-growing Steel structure manufacturer & EPC infrastructure company, providing services across the telecom, energy and railways sectors.

As of September 30, 2023, STEL has a strong diversified order book worth Rs 1,440 crore providing strong revenue visibility. STEL's order book comprises domestic EPC orders valued at Rs 1,090 crore, international EPC orders worth Rs 211 crore, orders under the heavy steel structure division worth Rs 130 crore, monopoles worth Rs 53 crore, and telecom tower and pole exports worth Rs 37 crore. Additionally, STEL receives recurring monthly orders for telecom towers worth approximately Rs 30-35 crore.

The Board of Directors has proposed issuing bonus shares to shareholders in a 4:1 ratio, meaning for every existing share held, shareholders will receive 4 additional free shares. Each bonus share will have a face value of Rs 1, and the record date for determining eligible shareholders is Thursday, February 1, 2024. This proposal is subject to shareholder and regulatory approvals.

Additionally, the Board considered and approved, in principle, the proposed amalgamation of ‘Hill View Infrabuild Limited’ with Salasar Techno Engineering Limited and other connected matters subject to requisite approvals.

The stock gave multibagger returns of 162.5 per cent from its 52-week low of Rs 36.25 per share. The stock is up by 580.6 per cent in just 3 years while the BSE Sensex Index is up by 45 per cent. Investors should keep an eye on this Small-Cap engineering stock.