Advik Capital Shares On Zoom 10% As The Issuance Rights Issue Remains Open Till 10th October

Advik Capital's equity jumped about 10% on Monday in advance of the cut-off date of its right issue which is currently ongoing. While the issuance was due to close on 4 October 2024, the firm has now shifted this date further to October 10, 2024 according to an exchange filing. The company in its previous disclosure said, "This has reference to the ongoing rights issue of equity shares by the Company which was opened on Tuesday, September 24, 2024, and was scheduled to close on Friday, October 04, 2024, has now been extended to Thursday, October 10, 2024, by Rights Issue Committee."

Regarding the stock change on the Bombay Stock Exchange (BSE), the stock commenced in green at Rs 2.80 from the close of Rs 2.75. The stock showed improvement during the session and even reached a high of Rs 3.02 thereby recording almost a 10% rise over the session. In earlier disclosures, Advik Capital board had already fixed the price and also the record date for the rights issue. September 12, 2024, was set as the record date to determine the shareholders entitled to these entitlements.

The company in its recent announcements declared good financial effectiveness for the first quarter accounting period 2024-25, stating that net profit has increased compared to last financial year by nearly 140%.

Advik Capital posted a net profit for the June 2024 quarter of Rs 2.22 crore which was up from Rs 0.91 crore posted in the same quarter a year ago. The June 2024 quarter experienced net sales of Rs 4.97 crore which was up 11.18% from Rs 4.47 crore net sales achieved during the same quarter last year. Moreover, the company's EBITDA was up 60.69 % to Rs 4.66 crore from the Rs 2.90 crore posted in the financial ending June 2023.

Advik Capital, which is categorized as a Non-Banking Financial company ASIN (NBFC), currently possesses total assets of 200 crores. It is boldly targeting SIB-NBFC status by the year 2025. Thus, to reach this target, the company has developed a more and more detailed program for its further expansion, deepening the heterogeneity of business lines in new promising spheres such as healthcare. Such an approach also involves the refreshing of the current lines of business in order to increase the efficiency of the Company as a whole and to stimulate additional investments into it.

The company has a present market capitalisation of Rs 189.02 crore, with a strong profit growth of 121% CAGR over the last 5 years. The promoters hold a 21.80% stake in the company whereas the shareholders of the public own up to 78.20% of the total number of shares outstanding as of June 2024.

Apart from the business expansion, Advik Capital is enhancing its core activities by induction of seasoned industry professionals having experience in risk, operations, governance and technology to enhance its operations.