Penny stock under Rs 2 hit 20 per cent upper circuit: Board announces 7:5 rights issue of shares!

The stock is up by 73.68 per cent from its 52-week low of Rs 0.76 per share.

On Monday, one of the Top Gainers on BSE, shares of Sharanam Infraproject and Trading Ltd was locked in 20 per cent upper circuit to Rs 1.32 per share from its previous closing of Rs 1.10 per share. The shares of the company saw a spurt in volume by more than 6.76 times on BSE. The stock’s 52-week high is Rs 1.55 and its 52-week low is Rs 0.76.

The Board of Directors of the company announced the rights issue of shares in the ratio 7:5 i.e., eligibility of shareholders entitled to issuance of 7 (seven) rights equity shares having a face value of Rs 1 each for every 5 (five) fully paid-up equity shares held by the eligible existing equity shareholders in the company on rights basis as of record date. The company fixed the record date for the rights issue as Wednesday, January 10, 2024.  

Sharanam Infraproject And Trading Ltd., established in 1992, is a multifaceted real estate company active in land and building purchases, sales, leasing, construction, and retail building material supply. This encompasses buying, selling, sub-letting, managing, and renting flats, shops, and godowns & earning income through lease agreements.  

With a market capitalization of Rs 16.50 crore, the company's entire 100% stake is held by public shareholders. The Quarterly Results for Q2FY24 revealed a net sales figure of Rs 0 and a net loss of Rs 0.07 crore. Similarly, the annual results for FY23 reported net sales amounting to Rs 0 and a net loss of Rs 0.17 crore.

The financial metrics indicate a challenging period for the company, marked by a lack of significant sales and incurred losses. The ownership structure, entirely in the hands of public shareholders, adds an additional layer of scrutiny and accountability. The stock is up by 73.68 per cent from its 52-week low of Rs 0.76 per share.

Following are the bulk deals that happened year to date (YTD basis): -

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