Only buyers: Back-to-back upper circuits for this micro-cap stock after the announcement of a rights issue!

The company has established the rights entitlement ratio at 133 new equity shares for every 200 existing equity shares held by eligible shareholders

Indian frontline indices continued their upward momentum propelled by robust economic data and election results, although broader indices experienced a significant downturn. Asit C Mehta Financial Services Ltd, a micro-cap company offering stockbroking and related services, garnered the interest of investors seeking potential opportunities in upcoming corporate actions.

Due to heightened buying interest, the company's shares hit the 5 per cent upper circuit, reaching a new 52-week high of Rs 205.60 per share on the BSE. The shares have displayed a robust rally, surging over 60 per cent in the past month. Notably, the stock has consistently hit upper circuits following the announcement by the company's board of directors regarding the consideration and approval of a rights issue.

The company has established the rights entitlement ratio at 133 new equity shares for every 200 existing equity shares held by eligible shareholders as of the record date. The record date, set for December 7, 2023, will determine the shareholders eligible to apply for the issue. The proposed period for the rights issue is scheduled to commence on December 15, 2023, with the opening date, and conclude on December 22, 2023, marking the closing date.

The company operates in the business of offering advisory and consultancy services related to fund mobilization and company restructuring, along with the leasing of vacant properties. It provides a range of financial products, services, and solutions to investors and extends advisory services to various SMEs. It's noteworthy that while the company has managed to achieve revenue growth, it has faced challenges in reporting profitable figures over the past few quarters.

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