0.49% Dividend Yield: Multibagger Penny Infra Stock Announces Share Allotment & Warrants; Shares Dive

Salasar Techno Engineering, a player in the turnkey EPC services for Railway and Power sectors, faced a downturn in its share prices by nearly 2% to Rs 20.25 per share on the National Stock Exchange (NSE) at 12:35 pm. This dip followed the company's announcement regarding the allotment of equity shares and fully convertible warrants on a preferential basis to both promoters and non-promoters.

In a recent board meeting held on Tuesday, April 30, Salasar Techno Engineering's Board of Directors greenlit the decision to allocate convertible warrants and equity shares preferentially. The company disclosed its plans to allot a significant 11.5743 crore equity shares to non-promoter public category group investors, resulting in a bolstering of the fully paid-up capital by Rs 169.42 crore. Additionally, Salasar Techno Engineering intends to issue Rs 8.6818 crore fully convertible warrants to both promoter and non-promoter public category investors, amounting to 25% of the total issue.

Salasar Techno Engineering's move was articulated in an exchange filing where they stated, "Allotment of 8,61,80,000 fully Convertible Warrants ('Warrants'), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share having face value of Re 1/- per Warrant, to persons belonging to 'Promoter' and 'Non-Promoter, Public Category' as detailed in Annexure-II, at an issue price determined in accordance with provisions of Chapter V of SEBI ICDR Regulations, after receipt of stipulated amount i.e. 25% of the Issue Price as subscription amount in accordance with provisions of Chapter V of SEBI ICDR Regulations."

Despite this recent dip, Salasar Techno Engineering's shares have been on an upward trajectory over the past year, classified as one of the multibagger penny stocks in the Indian stock market. With a surge of over 130% in the last twelve months, the company has attracted considerable attention from investors.

Salasar Techno Engineering specializes in providing turnkey EPC services for the Railway and Power sectors, coupled with the design and manufacturing of telecom towers, monopoles, and heavy steel structures. Its portfolio boasts a track record of supplying over 50,000 telecom towers, approximately 746 kilometres of power transmission lines, and around 629 kilometres of railway track to more than 600 clients across 25 countries.

Furthermore, Salasar Techno Engineering has a healthy dividend track record, having consistently declared dividends for the last five years. For the fiscal year ending March 2023, the company declared an equity dividend of 10.00% amounting to Rs 0.1 per share, translating to a dividend yield of 0.49% at the current share price of Rs 20.30.