Penny stock under Rs 5 in green as Board is likely to announce rights issue!
The stock is up by 30.6 per cent from its 52-week low of Rs 2.06 per share.
Today, shares of Advik Capital Ltd gained 1.13 per cent to Rs 2.69 per share from its previous closing of Rs 2.66. The stock’s 52-week high is Rs 4.35 and its 52-week low is Rs 2.06.
Advik Capital Ltd informed that the meeting of the Board of Directors of the Company is scheduled to be held on Saturday, September 07, 2024, at the Registered office of the Company, inter-alia:
To consider and approve various matters relating to the Rights Issue including terms and conditions such as the determination of the Rights Issue price and related payment mechanism, Rights Issue size, Rights Entitlement Ratio, the Record Date and timing of the Rights Issue and other matters incidental or connected therewith following the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended and other applicable laws.
This is in furtherance to the outcome of the meeting of the Board of Directors of the Company (“Board”) dated March 23, 2024, and subsequent shareholder approval via Postal Ballot, Results dated April 25, 2023, and Draft Letter of Offer dated May 17, 2024, filed with the Stock Exchanges for obtaining requisite In Principal Approval for proposed Right Issue. Further in this regard, BSE has granted its permission vide its letter LOD/RIGHT/AB/FIP/600/2024-25 dated July 19, 2024.
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According to Quarterly Results, the net sales increased by 49.2 per cent to Rs 227.90 crore, operating profit increased by 89.2 per cent to Rs 4.75 crore and net profit increased by 235.7 per cent to Rs 2.35 crore in Q1FY25 over Q1FY24. In its annual results (FY24), the company reported net sales of Rs 840 crore and net profit of Rs 6 crore.
Advik Capital, a Non-Banking Financial Company (NBFC) with a total assets of Rs 200 crore, is aiming to achieve the status of a Systematically Important Non-Banking Financial Company (SIB-NBFC) by 2025. To achieve this, the company is executing a comprehensive expansion strategy that includes enlarging its business offerings, exploring new-age sectors like healthcare, and strategically evaluating existing lines to improve overall performance. The company is also infusing additional resources to strengthen its operations and attract industry veterans with expertise in risk, operations, governance and technology.
The company has a market cap of Rs 122.45 crore and has delivered good profit growth of 121 per cent CAGR over the last 5 years. According to the shareholding pattern, the promoters of the company own 21.80 per cent and the public owns a 78.20 per cent stake in the company as of June 2024. The stock is up by 30.6 per cent from its 52-week low of Rs 2.06 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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