Multibagger solar stock hits back-to-back upper circuits: Bonus and rights issue likely; watch out!

which has been consistently hitting upper circuits, demonstrating a bullish trend

The domestic market showed significant resilience today, rebounding from yesterday's losses, primarily buoyed by robust performances in the banking sector. This positive momentum was propelled by a decline in domestic inflation, sparking expectations of increased rural demand. However, despite this encouraging trend, broader markets continued to lag behind frontline indices due to elevated valuations. The Nifty surged by 127 points or 0.59 per cent, closing at 21,743.

One notable standout amidst these market dynamics is Promax Power Ltd, which has been consistently hitting upper circuits, demonstrating a bullish trend. On Tuesday, the stock reached its upper circuit limit of 5 per cent at Rs 108.69, marking a fresh 52-week high. Over the past month, Promax has delivered remarkable returns of 96 per cent, while its year-to-date performance reflects a staggering 101 per cent increase. Over the course of the last year, the stock has soared by an impressive 211 per cent, solidifying its status as a multibagger stock.

Promax Power Ltd specializes in providing comprehensive engineering, procurement, construction, project management, and commissioning services to the power sector on a turnkey basis. Leveraging its extensive project management expertise spanning over 16 years, along with its robust construction capabilities and a team of skilled engineers and domain experts, Promax has established itself as a trusted player in the industry.

In particular, Promax excels in the solar project domain, offering high-quality services throughout the entire EPC (Engineering, Procurement, and Construction) lifecycle, from initial design to installation, management, and implementation. By deploying cutting-edge solar technology and emphasizing local expertise, Promax is committed to delivering cost-effective and sustainable solar power solutions.

An intriguing development to note is the upcoming board meeting of Promax Power Ltd scheduled for Tuesday, February 20, 2024. The agenda includes several significant discussions:

1. Increase in Authorized Share Capital of the company.

2. Exploration of various fundraising options such as Rights Issue, Preferential Allotment, and Convertible Instruments.

3. Migration to the Main board on both BSE and NSE.

4. Consideration of a bonus issue.

5. Convening of an Extraordinary General Meeting of the company.

Investors are advised to keep a close watch on Promax Power Ltd, as it navigates through these strategic decisions, which could potentially shape its future trajectory.

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