FIIs & DIIs collectively bought 1,08,36,584 shares of this multibagger stock with low PE and high ROE; scrip hit 52-week high!

The stock gave multibagger returns of over 130 per cent from its 52-week low of Rs 116.25 per share.

Satin Creditcare Network Limited, a leading microfinance player in India, successfully raised Rs 250 crore through a Qualified Institutional Placement (QIP) launched on December 14th. The issue received strong interest from institutional investors like ICICI Prudential Life Insurance and Bandhan Mutual Fund and was oversubscribed by 1.9 times. The company issued and allotted 1,08,36,584 shares at Rs. 230.70 each, slightly below the initial floor price, raising the necessary capital. This investment will help Satin Creditcare further expand its microfinance operations and empower underprivileged communities in India.

In simpler terms, Satin Creditcare successfully raised Rs 250 crore from institutional investors to fuel its growth and impact. This achievement highlights the company's strong prospects and commitment to financial inclusion in India.

List of allottees who have been allotted more than 5 per cent of the equity shares offered in the issue: -

Commenting on the QIP, Mr. HP Singh, CMD of Satin Creditcare Network Limited, said, “We are overwhelmed with the great response received from the market on this transaction. The QIP proceeds will aid the Company’s growth guidance, long-term capital growth and funding requirements for our subsidiaries. The Company already has a healthy capital adequacy ratio, and this issue will further bolster the balance sheet, underscoring Satin’s growth-oriented performance coupled with strong asset quality. Furthermore, it will enhance the future growth potential of our business and the sector. This equity raise has strengthened Satin’s capital base with new institutional investors joining hands to propel the Company towards sustained success.”

On Wednesday, shares of Satin Creditcare Network Ltd surged 7.5 per cent to an intraday high & a fresh 52-week high of Rs 276.80 per share from its previous closing of Rs 257.50. At the closing bell, shares of the company were trading at Rs 249.45 per share, down 3.13 per cent with a spurt in volume by more than 2 times on BSE.

The company has a market cap of Rs 2,485 crore. The shares of the company have a PE of 7.04x and an ROE of 16 per cent. The stock gave multibagger returns of over 130 per cent from its 52-week low of Rs 116.25 per share. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.