Penny Stock from Shipping Industry Announces Preferential Allotment of 1,80,000 Shares to Promoter and Promoter Groups – Stock Rallies 18 Per cent with Significant Volume

Rakesh Deshmukh
Penny Stock from Shipping Industry Announces Preferential Allotment of 1,80,000 Shares to Promoter and Promoter Groups – Stock Rallies 18 Per cent with Significant Volume

The company’s shares have delivered an impressive return of around 40 per cent in just 1 week.

This micro-cap company is engaged in clearing and forwarding as well as transportation services. It operates at 4 seaports in Gujarat: Mundra, Hazira, Kandla, and Pipavav. The company currently manages a fleet of 9 owned commercial trailers for moving containers and also hires third-party transport operators to meet customer shipping demands.

Today, Cargotrans Maritime Ltd's shares have rallied by over 18 per cent with significant volumes. The company held a Board of Directors meeting on Monday, November 11, 2024, where the board discussed and approved several key proposals as follows.

Preferential Allotment of Equity Shares

The board has approved the issuance of up to 6,00,000 equity shares with a face value of Rs 10 each on a preferential basis. This allotment will include shares for both the Promoter/Promoter Group and public category investors. This issuance is subject to shareholder approval, and the board has indicated that the relevant dates and the date for an Extraordinary General Meeting (EGM) will be finalized and announced shortly.

Increase in Authorized Share Capital

To accommodate the planned preferential issue, Cargotrans Maritime Ltd. will increase its authorized share capital from Rs 4.5 crore, representing 45 lakh shares of Rs 10 each, to Rs 5 crore, comprising 50 lakh shares of ₹10 each. This proposal is also subject to shareholder approval and is expected to enhance the company's capital base to support future expansion and strategic initiatives.

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Impact on Shareholding Structure

Before the issue, Cargotrans Maritime Ltd.'s equity structure comprised 40,80,000 shares, with the Promoter and Promoter Group holding 73.53 per cent (30,00,000 shares) and the public holding 26.47 per cent (10,80,000 shares). Following the new issuance, the company's total equity will expand to 46,80,000 shares, altering the shareholding distribution. The Promoter and Promoter Group will now hold 31,80,000 shares, adjusting their ownership to 67.59 per cent, while the public stake will be 15,00,000 shares, representing 32.05 per cent of total equity.

The preferential allotment includes specific allocations within the Promoter Group, with 10,500 shares to be issued to Mathew Jacob and an additional 10,500 shares to BChandershekhar Rao. Furthermore, Kesapurath World LLP, an entity within the Promoter Group, will receive 1,59,000 shares.

Share and Financial Performance

Today the company’s shares closed the day at around Rs 88.05 per shares on the BSE. The company's current market capitalization stands at Rs 35.92 crore, and the stock has generated an impressive return of around 40 per cent in the past week.

The company doesn’t announce Quarterly Results and as per the half-yearly results in March 2024, Cargotrans Maritime recorded a revenue of Rs 28.58 crore compared to Rs 29.49 crore. The operating profit for the period stood at Rs 0.84 crore. The net profit stood at Rs 0.58 crore compared to a profit of Rs 0.54 crore. Looking at the annual performance, the company generated a revenue of Rs 61.70 crore in FY24, compared to Rs 69.61 crore in FY23. The operating profit for FY24 was Rs 2.415 crore with a net profit of Rs 1.78 crore.

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

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