Textile Penny Stock Below Rs 5; Board to Raise Funds via Rights Issue for Long-Term Working Capital Support and To Reduce Part of Secured Bank Debts
The stock is up by 14.2 per cent from its 52-week low of Rs 4.22 per share and has given multibagger returns of 490 per cent in 5 years.
Bhandari Hosiery Exports Ltd informed that the Board of Directors of the Company held today, i.e. on Wednesday, April 30, 2025, at 03:00 P.M. and concluded at 03:30 P.M. at the registered office of the Company. The following matters were considered:
- The members of the board discussed raising of long-term funds by way of fresh Equity Share Capital to be utilised for long-term working capital support and also to reduce part of the present secured bank debts of the company through a fresh Rights Issue.
- On receiving confirmation of the Board for the fresh Rights Issue, the members of the board discussed about formation of a separate focused Rights Issue Committee (RIC) which will be empowered to take the necessary decisions and actions to appoint professionals/ intermediaries/ Monitoring Agency needed at appropriate time to save time to be spent in calling the meeting of the Board of Directors. The RIC will be chaired by the Chairman of the Audit Committee and its composition will be two Independent Directors and one Promoter Executive Director. CFO of the Company and the CS & Compliance Officer of the Company shall assist the RIC and will coordinate with the appointed professionals/ intermediaries/ Monitoring Agency in all aspects related to the proposed fresh Rights Issue.
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About the Company
Bhandari Hosiery Exports Ltd is a part of the Bhandari group. It is a fully integrated textile company which specialises in circular knitted manufacturing. The company is engaged in the design, development, knitting, dyeing, finishing, and garments and provides fashion supplies for retailers and brands worldwide. The company has a market cap of over Rs 100 crore
On Wednesday, shares of Bhandari Hosiery Exports Ltd plunged 2.43 per cent to Rs 4.82 per share with an intraday high of Rs 4.96 per share and an intraday low of Rs 4.80 per share.
The shares of the company have a PE of 17x whereas the industry PE is 22x. The stock is trading at Rs 0.77 times its book value. The stock is up by 14.2 per cent from its 52-week low of Rs 4.22 per share and has given multibagger returns of 490 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.