Cable Stock Rally 5% After Posting 53.84% Growth In Q3 PAT T0 Rs 22.03 Cr

At the close of trading on Friday, Paramount Communications, a small-cap cable firm, had a market valuation of Rs 2,968.06 Cr. The stock gained 5% from the previous close after rising from its opening price of Rs 104.80 a share on the BSE to an intraday high of Rs 108.05. Following the company's excellent performance for the quarter ending in December 2023, there was a go-up in the share price.

Paramount Communications' net profit climbed 53.84% to Rs 22.03 crore in the quarter that ended in December 2023 from Rs 14.32 crore in the quarter that ended in December 2022. Sales for Q3FY24 jumped 30.34% to Rs 284.25 crore from Rs 218.09 crore in the corresponding quarter of the previous fiscal.

"During the quarter, the company has allotted 4,09,25,000 equity shares of Rs. 2/- each to non-promoters persons and entities on receipt of balance money upon exercise of option for conversion of equity share warrants. Consequent upon the allotment of shares as mentioned above, the paid up equity share capital of the company has increased from 23,86,84,890 equity shares of Rs 2/- each to 27,96,09,890 equity shares of Rs. 2/- each. The remaining equity warrants shall be converted within the specified time limit as per SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2018," said Paramount Communications in a stock exchange filing.

"The shareholders of the company, in the Extra Ordinary General Meeting held on 11.01.2024 has approved to issue of 2,21,24,980 Equity shares having Face Value of Rs. 2/- per equity share on preferential basis to non-promoter persons and entities at a price of Rs. 66.50/- per equity share (including premium). Out of above, upon receipt of amount of issue price in respect of 2,03,74,980 equity shares, the same has been allotted to respective allotees on 29.01.2024," further stated the company in a regulatory filing.

The funds have been placed in a utilisation account with a scheduled bank and mutual fund. There has been no variation in the use of issue proceeds; the funds that were raised were used for the intended purpose, according to the company.

One of the top wire and cable manufacturers in India is Paramount Communications Ltd., which is a part of the Paramount group of firms.