Penny stock below Re 1 jumps 4% as company announces EGM to seek shareholder nod for fundraising plan

Penny stock Srestha Finvest hogged the limelight in trade on Friday, October 15, as it rose nearly 4 per cent to Re 0.82 after the company announced an Extra-ordinary General Meeting (EGM) to seek shareholders’ approval to fundraising along with other propositions.

The penny stock, priced below Re 1, opened at Re 0.80 as against its previous close of Re 0.79. At 1.20 pm, the stock was at its day’s high of Re 0.82, up 3.80%.

The company seeks shareholder approval of the board’s decision to raise capital via qualified institutions placement to eligible investors through the issuance of equity shares.

The company’s board last week on October 9 had approved raising funds by issuing equity shares with a face value of Re 1 each, amounting to a total of ₹100 crore. The proceeds from the QIP will be used for purposes such as pre-payment and/or repayment of debts, working capital requirements, general corporate purposes, and any other purposes permitted under applicable laws.

Apart from this, the company also seeks shareholders’ approval to issue fully convertible equity warrants on a preferential basis. The Board of Directors on October 09, 2024, had approved the proposal for raising of funds by issue and allotment of up to 93 crore convertible equity warrants of the company at ₹1.05 per equity warrants to the investors on a preferential basis. The company aims to raise these funds to meet working capital requirements, further strengthen the company’s capital base and general corporate purposes.

The company intends to raise ₹97.65 crore by the way of such securities.

Furthermore, the third item on the agenda is to seek approval to raise the borrowing limits of the company to ₹500 crore.

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First Published:

18 Oct 2024, 01:47 PM IST