18% Gain In 1 Week: Penny Stock Under Rs 1 To Consider Fundraising In One Or More Tranches

After rising 18.67% over the previous five sessions, Srestha Finvest Ltd. closed at a 5% upper circuit at Rs 0.89 each on Friday, demonstrating its popularity as a penny stock among market observers. The spike in stock price followed the company's announcement that the board meeting would take place on October 9, 2024, to consider and approve fundraising, in one or more tranches.

"In this regard, the trading window for dealing in securities of the Company by the Designated persons and their immediate relatives shall be closed from October 04, 2024, till 48 hours from the date of the conclusion of the board meeting," said the company in a stock exchange filing.

Earlier Srestha Finvest had declared sub-division of face value of equity shares from Rs. 2/- each to face Value of Re. 1/- each for which Monday, September 23, 2024 was the record date. The record date was fixed for the purpose of determining the eligibility of shareholders of the company for sub-division/split of each fully paid-up equity share having face value of Rs.2/- each is sub-divided into 2 fully paid equity shares having face value of Rs.1/- as approved by the shareholders on September 05, 2024.

Srestha Finvest had subscribed for 75% of the equity shares of Srestha Greentech Private Limited, the company's newly formed subsidiary, earlier in July. As a subsidiary, the recently formed company will be considered a related party. The aforementioned subsidiary is promoted by the company. Following its establishment, the firm subscribed to its paid-up capital. Acquisition of 75% equity shares, or 3,75,000 equity shares at Rs 10/-each, for a total of Rs. 37,50,000/- was the only price paid for the shares.

Financially speaking, Srestha Finvest revealed net sales of Rs. 39.50 crore for the June 2024 quarter, increasing 1633.98% from Rs. 2.28 crore for the same period in 2023. In Q1FY25, the company's net profit was Rs. 31.01 crore, up 6962.92% from Rs. 0.44 crore in Q1FY24. EBITDA growth YoY was from Rs. 1.53 crore to Rs. 38.09 crore, or 2389.54% more.

Srestha Finvest Limited is a non-banking finance company incorporated in the year July 22nd, 1985. The company's market cap stood at Rs 145.96 Cr as of Friday's closing session. The shares of Srestha Finvest reached a 52-week-high of Rs 1.28 on (26/07/2024) and a 52-week-low of Rs 0.49 on (28/03/2024). The stock is currently trading at 0.58 times the book value. The share price of Srestha Finvest has risen 48.33% during the previous six months, and 45.90% during the last year. The stock climbed 39.06% year to date (YTD) so far in 2024.