Multibagger Penny Stock Under Rs 40; Company Raises Rs 86.40 Crores Through Preferential Issuance for Business Expansion

Kiran Shroff
Multibagger Penny Stock Under Rs 40; Company Raises Rs 86.40 Crores Through Preferential Issuance for Business Expansion

From Rs 10.15 (52-week low) to Rs 35.04 per share, the stock gave multibagger returns of 245 per cent in just 1 year.

Tirupati Forge Ltd, a prominent manufacturer and exporter of forged and machined components, successfully raised Rs 86.40 crore through the preferential issuance of equity and warrants. This significant capital infusion was subscribed by various investors, including prominent family offices and high-net-worth individuals. The company intends to allocate these funds towards expanding its capacity, primarily through land acquisition and investments in plant and machinery.

To facilitate future fundraising efforts, the company's Board of Directors proposed to amend its Memorandum of Association. The amendment involves increasing the authorized share capital from Rs 24 crore to Rs. 26.50 crore. This expansion will be achieved by issuing an additional 13,25,00,000 equity shares of Rs 2 each. The proposed amendment requires approval from the company's shareholders under Sections 13 and 61 of the Companies Act, 2013. Upon approval, the revised Clause V of the Memorandum of Association will reflect the increased authorized share capital.

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About Tirupati Forge

Incorporated in year 2012, Tirupati Forge is engaged in manufacturing and exporting forged and machined components offering a diversified portfolio of products. The company holds several quality certificates namely IATF 16949:2016, ISO 9001:2015, PED AD 2000 and Canadian Registration for all provinces of Canada. Its manufacturing facilities are situated at Hadamtala, Dist. Rajkot, Gujarat, deploying the latest technologies along with in-house testing and R&D laboratory to manufacture and supply best-in-class products to its domestic and global customers. With the strong demand outlook for forged products in India as well as globally, the company is targeting to double its manufacturing capacity and expand its customer segments going ahead. The Company’s strong capabilities backed by visionary leadership place Tirupati Forge on an exciting growth journey.

The company has a market cap of Rs 363.3 crore and FIIs took a fresh entry & bought a 0.03 per cent stake in September 2024. From Rs 10.15 (52-week low) to Rs 35.04 per share, the stock gave multibagger returns of 245 per cent in just 1 year. Investors should keep an eye on this penny stock.

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

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