Penny stock under Rs 2 hit back-to-back lower circuits & 52-week lows; Board announces rights issue in the ratio of 198:100 after bonus shares!

The promoters own a 1.76 per cent stake and the rest of the stake i.e., 98.24 per cent is owned by the public.

IFL Enterprises Ltd has announced that its Board of Directors has greenlit a fundraising initiative, not exceeding Rs 49,75,00,000. This will involve the issuance of equity shares through a rights issue to eligible equity shareholders of the company as of the upcoming record date (to be notified subsequently). The move complies with relevant laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, SEBI Listing Regulations, circulars issued by the Securities and Exchange Board of India, and the Companies Act, 2013.

A Rights Issue Committee will be constituted to oversee the process and determine various terms and conditions, such as the record date, rights issue price, rights entitlement ratio, timing and terms of payment, and the appointment of intermediaries. The proposal involves issuing 198 Equity shares for every 100 existing shares, each with a face value of Rs 1 i.e., 198:100.

IFL Enterprises Company is involved in the business of trading in goods e.g., fabric and related products as well as shares and securities within permissible limits prescribed by regulators such as RBI or SEBI.

After rising nearly 200 per cent over the period of 2 years, shares of IFL Enterprises Ltd are undergoing a correction and have hit the lower circuit for the sixth straight day. Today, shares of IFL Enterprises Ltd plunged 5 per cent to Rs 1.80 per share from its previous closing of Rs 1.89. The stock also hit a 52-week low of Rs 1.80 per share. In the recent trading sessions, the stock has been hitting back-to-back lower circuits and 52-week lows.

Bulk Deal: Banke Tradelink Private Limited sold 4863513 shares at Rs 1.86 per share each aggregating to Rs 0.90 crore and Katyayani Tradelink Private Limited sold 42,92,929 shares at Rs 1.80 per share aggregating to Rs 0.77 crore on January 01, 2023, via a bulk deal as per data available on BSE.

Earlier, the shares of the company ex-traded bonus shares in the ratio of 1:10 i.e., 1 new fully paid equity share for every 10 existing equity shares on December 18, 2023.

Talking about the financials, IFL Enterprises has a market cap of Rs 45 crore. The company reported amazing numbers in its Quarterly Results (Q2) and annual results (FY23). The stock gave multibagger returns of 300 per cent in 3 years and a whopping 500 per cent in 5 years. The promoters own a 1.76 per cent stake and the rest of the stake i.e., 98.24 per cent is owned by the public.

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