Penny stock below ₹1: This NBFC share may be in focus on Monday; here’s why | Stock Market News
Source: Live Mint
Penny stock Srestha Finvest is likely to draw investor attention on Monday, November 11, after the company announced it held an extraordinary general meeting (EGM) on Friday, November 8, to approve a special resolution for raising capital through a QIP.
In an exchange filing post-market hours on November 8, the NBFC firm said that the EGM of its shareholders was held on November 8 at its registered office in Chennai.
At the EGM, special resolutions were presented to raise capital through a Qualified Institutions Placement (QIP) to eligible investors by issuing equity shares, issuing fully convertible equity warrants on a preferential basis, and approving an increase in the company’s borrowing limits.
Srestha Finvest fundraising news
On October 9, the company’s board of directors approved raising funds by issuing equity shares with a face value of ₹1 each, amounting to a total of ₹100 crore through a Qualified Institutional Placement (QIP).
The company intends to use the proceeds from the QIP for pre-payment and/or repayment of debts, working capital requirements, general corporate purposes, and other purposes that may be permissible under applicable laws.
The company’s board also approved the issuance of up to 93 crore equity shares with a face value of ₹1 each at an issue price of ₹1.05, which includes a premium of ₹0.05 per share. Under the preferential issue, shares totalling 93 crores have been allotted to a diverse group of allottees.
Furthermore, the board also decided to increase the company’s borrowing limit to ₹500 crore.
Meanwhile, the company’s board of directors will meet on November 14 to consider and approve the unaudited financial results for the quarter that ended September 30, 2024.
The penny stock has seen tepid gains this year, rising 11.5 per cent. It hit a 52-week low of ₹0.49 on March 28 this year and rose to a 52-week high of ₹1.28 on July 26.
Over the last year, the stock has risen 15 per cent. On a monthly scale, the stock has been witnessing a healthy uptrend in November as it has risen about 8 per cent this month. The stock suffered strong losses of 12 per cent, 20 per cent and 19 per cent in August, September and October this year, respectively.
In July this year, the company’s board of directors approved a stock split in a 1:2 ratio. It was the second time the penny stock had declared a stock split. On October 13, 2016, this stock traded ex-split in a 1:5 ratio.
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