Vijay Kedia’s portfolio multibagger penny stock with Rs 19,134.7 crore order book; Board set a floor price for the QIP at Rs 59.50 per share!

The stock gave multibagger returns of 255 per cent in just 1 year whereas BSE Small-Cap Index is up by 65 per cent.

Patel Engineering Limited is issuing equity shares with a face value of Rs 1 each through a Qualified Institutional Placement (QIP). This issuance is authorized under various regulations including SEBI ICDR, Companies Act 2013, and PAS Rules. The board of directors approved the issuance on February 12, 2024, and shareholders approved it through a special meeting on March 8, 2024. The floor price for the offering has been set at Rs 59.50 per share. The company may offer a discount of up to 5 per cent on this price, as per regulations. An Allotment Committee meeting is scheduled for April 25, 2024, to determine the final issue price for the shares offered to qualified institutional buyers.

Celebrating its 75th year, Patel Engineering Ltd. played a pivotal role in inaugurating the Sela Tunnel Project in Arunachal Pradesh, a ceremony graced by Prime Minister Shri Narendra Modi. This Rs 650 crore project marks a significant leap in India's strategic infrastructure. Built under Project VARTAK by the Border Roads Organizations (BRO), Patel Engineering's team of over 50 engineers and 800 workers braved harsh weather conditions (reaching -15°C) to construct over 8.7 kilometres of tunnels and roads, showcasing their expertise in overcoming geographical and environmental challenges. Notably, the Sela Tunnel is the world's longest bi-lane road tunnel at over 13,500 feet, facilitating year-round troop movement and strengthening border security. This tunnel reconnects Arunachal Pradesh to the rest of India, aligning with the government's focus on security and economic development in the northeast. By completing this project, Patel Engineering Ltd. not only cemented its reputation for handling complex projects but also contributed to India's strategic and economic interests in the region.

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On Wednesday, shares of Patel Engineering Ltd gained 3.5 per cent to an intraday high of Rs 65.90 per share from its previous closing of Rs 63.69. The stock’s 52-week high is Rs 79 while its 52-week low of Rs 18.21. The stock gave multibagger returns of 255 per cent in just 1 year whereas BSE Small-Cap Index is up by 65 per cent.

As of March 2024, an ace investor, Vijay Kedia sold 10,00,000 shares or 0.13 per cent stake in the company and decreased its stake to 1.55 per cent compared to 1.68 per cent in December 2023.

Patel Engineering Ltd is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works in areas like hydro, irrigation & water supply, urban infrastructure and transport. The company has a market cap of over Rs 5,600 crore with a 3-year stock price CAGR of 79 per cent.

Order book: As of December 31, 2023, the company’s order book stands at Rs 19,135 crore (Including L1 Orders). Segment-wise order book includes hydroelectric (60.67 per cent), irrigation (21.05 per cent), tunnel (11.02 per cent, road (2.99 per cent) and other (27 per cent). 

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