3,100 Per Cent Multibagger Returns: Penny Stock Below Re 1; Board to Fund Raise Rs 25,00,00,000 via Preferential Issue
The stock gave multibagger returns of 475 per cent in 2 years; 1,200 per cent in 3 years and a whopping 3,000 per cent in 5 years
On Wednesday, shares of Avance Technologies plunged 1.50 per cent to Rs 0.66 per share from its previous closing of Rs 0.67 per share. The stock’s 52-week high is Rs 1.15 and its 52-week low is Rs 0.52. The shares of the company saw a spurt in volume by more than 1.03 times on the BSE.
The Board of Directors of the Company, in their meeting held, has approved a fund-raising initiative of up to Rs 25,00,00,000 through a preferential allotment/private placement of convertible equity warrants. While the total amount to be raised is fixed at Rs 25,00,00,000, the exact number of securities to be issued, the names of the allottees, the post-allotment subscription outcome, issue price, and the number of investors are yet to be decided and will be intimated in due course. Notably, these warrants will be convertible into equity shares within 18 months from the date of allotment, a detail that will be disclosed on an event basis, and in the event of the tenure lapsing, the application money will be forfeited.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
Avance Technologies Ltd, founded in 1985, offers a wide range of IT products and services. They not only sell hardware and software but also develop custom solutions based on client needs. Their expertise includes market research, trend analysis, and data-driven strategy development. Avance Technologies also provides a comprehensive suite of digital marketing services, including SEO, social media management, content creation, and marketing automation. Additionally, they offer specialised services in areas like influencer marketing, app marketing, and e-commerce using WhatsApp. Their clientele boasts big names like Tata Tele, Reliance, and FDC.
In its annual results, the net sales increased by 372.6 per cent to Rs 144.29 crore and net profit increased by 1,102.5 per cent to Rs 4.88 crore in FY24 compared to FY23. The company has a market cap of over Rs 120 crore. The stock gave multibagger returns of 475 per cent in 2 years; 1,200 per cent in 3 years and a whopping 3,000 per cent in 5 years. Investors should keep an eye on this micro-cap multibagger stock.
Disclaimer: The article is for informational purposes only and not investment advice.