Jewellery Penny Stock Below Rs 5 In Green as Board to Raise Rs 40,00,00,000 via Rights Issue
The stock is up by 18.5 per cent from its 52-week low of Rs 4.12 per share and has given multibagger returns of 380 per cent in 5 years.
On Tuesday, shares of Deep Diamond India Ltd gained 2.95 per cent to Rs 4.88 per share from its previous closing of Rs 4.74 per share. The stock’s 52-week high is Rs 11.74 per share and its 52-week low is Rs 4.12 per share.
During its meeting, the Rights Issue Committee of Deep Diamond India approved the Draft Letter of Offer (DLOF) for a rights issue aimed at raising up to Rs 40 crore. This capital will be generated through the issuance and allotment of fully paid-up equity shares, each with a face value of Rs 1, to the company's eligible shareholders. The specifics regarding the issue price, ratio, and record date will be determined by the Board or the Rights Issue Committee at a later stage, pending the in-principle approval from BSE Limited and adherence to all relevant regulations, including those set forth by SEBI and the Companies Act, 2013. This rights issue offers existing equity shareholders the opportunity to subscribe to additional equity shares of the company.
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Deep Diamond India Ltd, established in 1993, specialises in crafting a diverse range of 18K real diamond jewellery, including rings, earrings, pendants, and more, all manufactured in-house. The company offers a unique 100 per cent buyback guarantee on its real diamond jewellery and caters to men with custom-made diamond watches, belts, cufflinks and shirt buttons.
The promoters own 0.08 per cent, FIIs own 1.04 per cent and the remaining 98.88 per cent stake is owned by public shareholders as of December 2024. The company has a market cap of over Rs 20 crore and the stock is trading at 0.70 times its book value. The stock is up by 18.5 per cent from its 52-week low of Rs 4.12 per share and has given multibagger returns of 380 per cent in 5 years. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.