Promoters bought 94,70,000 warrants & non-promoters bought 31,80,80,000 warrants: Debt-free multibagger defence telecom stock at Rs 42.67 hit upper circuit today
The company has a market cap of Rs 85.87 crore and it's completed debt-free as of June 2024.
On Thursday, shares of Kavveri Telecom Products Limited were locked in a 2 per cent lower circuit to Rs 42.67 per share from its previous closing of Rs 41.84. The stock’s 52-week high is Rs 44.49 per share while its 52-week low is Rs 7.60 per share, gaining multibagger returns of 461 per cent.
Kavveri Telecom is a leading wireless products manufacturer, providing world-class hardware products and solutions for the telecom, defence and space industry. Kavveri Telecom combines expertise with experience to deliver state-of-the-art products and solutions spanning the wide spectrum of the wireless Industry up to 18 GHz frequency range. The diverse range of products manufactured by Kavveri includes Antennas, RF (Radio Frequency) Components, Filters, Combiners, Multi-couplers, Repeaters, TMA/TMB and many more.
Kavveri Telecom Products Limited has issued 32,75,50,000 convertible warrants to promoters and non-promoters through a private placement. Promoters subscribed to 94,70,000 warrants, while non-promoters subscribed to 31,80,80,000 warrants. The warrants were issued for Rs 16 each, and the company received Rs 13,10,00,000 as 25 per cent of the total issue price. The allotment was approved by the board of directors based on the recommendation of the Stakeholders Relationship Committee.
Kavveri Telecom Products Ltd, a leading wireless subsystem manufacturer, has made significant strides in the telecom industry. The company recently designed and developed a new dual-band panel antenna for cellular networks in Australia, operating in the 2 GHz and 3 GHz frequency bands. In addition to this technological advancement, Kavveri secured government approval to change its name to KAVVERI DEFENCE & WIRELESS TECHNOLOGIES LIMITED, reflecting its broader scope and ambitions. Earlier this year, the company received a substantial Rs 109 million order for domestically produced radio frequency products and antennas, aligning with the government's Make in India initiative. Kavveri's investment in research and development has positioned it well to expand its operations globally, contributing to India's emergence as a prominent telecom equipment manufacturing hub.
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According to Quarterly Results, the net sales increased by 107 per cent to Rs 0.62 crore in Q1FY25 compared to Rs 0.30 crore in Q1FY24. The company reported a turnaround net profit of Rs 0.03 crore in Q1FY25 compared to a net loss of Rs 0.20 crore in Q1FY24, an increase of 115 per cent.
The company has a market cap of Rs 85.87 crore and it's completed debt-free as of June 2024. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.