Keep an eye on this multibagger small-cap stock that was locked in upper circuit on January 29; gains over 100 per cent YTD and announces bonus shares & fund-raising plan!

The stock gave multibagger returns of over 100 per cent year to date (YTD), 200 per cent in 1 year and a whopping 800 per cent in 3 years.

The Indian stock market revelled in the green on Monday, with both the BSE Sensex and NSE Nifty indices rising over 1%. The positive sentiment was further bolstered by a multibagger stock skyrocketing 10 per cent to a fresh 52-week high of Rs 132.20, emerging as one of the day's Top Gainers. This stellar performance suggests an overall bullish outlook for the market.

The stock name is SALASAR TECHNO ENGINEERING LTD (STEL).

The company is set to raise a hefty Rs 806.4 crore to propel its growth and strengthen its financial standing. This will be achieved through a two-pronged approach: issuing up to 39 crore equity shares to non-promoters and 73 crore convertible warrants to both promoters and non-promoters, both at premium prices and subject to shareholder and regulatory approvals. To sweeten the deal for preferential allottees, they'll receive 4 bonus shares for each equity share and warrant, capitalizing on a pre-determined issue price and an upcoming bonus issue on February 1st, 2024.

Notably, specific investors like North Star Opportunities Fund, Intuitive Alpha Investment Fund, and Coeus Global Opportunities Fund have been earmarked for significant share allocations, underscoring the company's confidence in its fundraising strategy. This move is poised to inject substantial capital into the company, paving the way for its ambitious growth plans.

Salasar Techno Engineering Ltd (STEL), a prominent player in engineering and infrastructure solutions, has made a significant mark in the railway and power sectors, providing comprehensive EPC services with a strong track record of completed projects and a promising order book. Starting with contracts totalling around Rs 731.03 crore from esteemed power sector PSUs and Indian Railways, STEL has expanded its expertise, securing contracts worth Rs 2,516.43 crore in recent years, demonstrating continuous growth.

With a focus on innovation and customer satisfaction, STEL aims to contribute significantly to India's infrastructure development, highlighted by its successful bidding for contracts worth Rs. 979.37 crore under the RDSS. Its order book, categorized into competitive and regular business orders, stands at Rs. 1,420.27 crore in the railway and power sectors, supplemented by annual orders of approximately Rs 420 crore from trusted telecom sector clients.

Results: According to the Quarterly Results, the net sales increased by 6.42 per cent to Rs 275.35 crore and the net profit increased by 20.5 per cent to Rs 9.05 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 14.5 per cent to Rs 537.21 crore and the net profit increased by 29.5 per cent to Rs 19.20 crore in H1FY24 compared to H1FY23.

The stock gave multibagger returns of over 100 per cent year to date (YTD), 200 per cent in 1 year and a whopping 800 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

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