Only Buyers in This Penny Stock Under Rs 10; Hit 10 Per Cent Upper Circuit and 1:1 Rights Issue of Shares Announced
The stock is trading at 0.65 times its book value and it is up by 73 per cent from its 52-week low of Rs 3.80 per share.
Today, the shares of 7NR Retail Limited hit a 10 per cent upper circuit to Rs 6.56 per share from its previous closing of Rs 5.97 per share with a spurt in volume by more than 1.01 times on the BSE. The stock is trading at 0.65 times its book value and it is up by 73 per cent from its 52-week low of Rs 3.80 per share.
7NR Retail Limited's Board of Directors convened a meeting at their Ahmedabad office. A key decision made was the approval of a Rights Issue of 2,80,06,800 equity shares, each with a face value and issue price of Rs 10, aggregating to Rs 28,00,68,000. The Record Date for determining eligible shareholders for this Rights Issue has been set as Monday, June 09, 2025. The entitlement ratio is 1 (One) Rights Equity Share for every 1 (One) fully paid-up Equity Share held by eligible shareholders.
Furthermore, the Board approved an increase in the company's Authorized Share Capital from the existing Rs 28,00,68,000 to Rs 56,05,00,000. This will result in the capital being divided into 5,60,50,000 equity shares of Rs 10 each, and will necessitate an alteration to the Capital clause in the Company's Memorandum of Association. Assuming full subscription of the Rights Issue, the outstanding equity shares post-issue will be 5,60,13,600 Equity shares of Rs 10 each, with the full Rs 10 per equity share payable on application.
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About the company - Founded in 2012, 7NR Retail Limited is an Indian apparel store specializing in ready-made garments, suiting and shirting fabrics, kids' clothes, uniforms, and western-style apparel under its brand, catering exclusively to customers within India. The company has a market cap of Rs 18.37 crore. As of March 2025, the promoters own a 10.96 per cent stake and the rest of the stake i.e., 89.04 per cent is owned by the general public.
Results: According to the Quarterly Results, the net sales increased by 1,392 per cent to Rs 14.92 crore in Q4FY25 compared to Rs 1 crore in Q4FY24. The company reported a turnaround net profit of Rs 1.30 crore in Q4FY25 compared to a net loss of Rs 0.23 crore in Q4FY24, an increase of 665 per cent. In its annual results, the net sales increased by 85 per cent to Rs 21.47 crore in FY25 compared to Rs 11.62 crore in FY24. The company reported a turnaround net profit of Rs 0.33 crore in FY25 compared to a net loss of Rs 1.11 crore in FY24, an increase of 130 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.