167% Return In 6 Months: Cable Stock Increases Authorized Share Capital

With a market valuation of Rs 2,574.65, Paramount Communications Ltd. closed on the BSE on Friday at Rs 92.08 per share. The small-cap industrial company has risen 167% in just six months, making it one of Dalal Street's multibagger stocks. Following the company's announcement to increase its authorised share capital, the stock has come into focus.

The company said in a stock exchange filing that its Board of Directors approved "The Authorised Share Capital of the Company was increased from Rs 70,00,00,000/- (Rupees Seventy Crores only) divided into 30,00,00,000 ( Thirty Crores Only) Equity Shares of Rs 2/- ( Rupees Two only) each and 10,00,000 ( Ten Lakhs only ) Redeemable Preference Shares of Rs 100/-( Rupees One Hundred only) each to Rs 80,00,00,000/- (Rupees Eighty Crores only) divided into 35,00,00,000 ( Thirty Five Crores Only) Equity Shares of Rs 2/- ( Rupees Two only) each and 10,00,000 ( Ten Lakhs only ) Redeemable Preference Shares of Rs 100/-( Rupees One Hundred only) each by the addition there to a sum of Rs 10,00,00,000/- (Rupees Ten Crores only) divided into 5,00,00,000 ( Five Crores Only) Equity Shares of Rs 2/- ( Rupees Two only) each of the Company."

The company also approved the appointment of Shri Harish Pal Kumar (DIN: 01826010) and Shri Narendra Kumar Goyal (DIN: 01963727) as Non- Executive Independent directors with effect from December 18, 2023, for a period of 5 years by way of Special Resolution.

The company board convened on Monday, December 18, to discuss and authorise the issuance of up to 2,25,24,980 equity shares with a face value of Rs 2 each to individuals or entities that are not affiliated with the company's promoters or promoter group, at a price per share of Rs 66.50. Commenting on the same, the Board of Directors of Paramount Communications said at the EGM held on January 11, 2024 that they approved "Issue of Equity Shares to non-promoter on preferential basis by way of Special Resolution subject to the approvals, consents, permissions and sanctions of the Securities and Exchange Board of India."