Financial Services Stock Below Rs 1 Locked At 5% Upper Circuit; Do You Own?

Srestha Finvest's share price is up by 5% to Re 0.93 from Re 0.89. The stock has had a lot of movement upward in the last months in terms of being appreciated and hitting the upper circuit. Over the past one year, the stock of Srestha Finvest has increased by more than 46% while for the 43.75% activity this year so far. The October title machine has been increasing by 15%, surely following up from previous months which started on 22% in July, 38%, 8% and 17.6% in June May and April respectively, 43.75% year-to-date. The stock has traded in a range of Re 0.49 and Rs 1.28 for the 52-week range low and high respectively. The market cap as of now stands at Rs 150.88 crore.

In the most recent and important announcement, Srestha Finvest Limited's Board has endorsed a capital raising deal in Qualified Institutional Placement (QIP). The Company is planning to raise funds through issuing equity shares of Re 1 each amounting to Rupees 100 crores.

A further 93 crore equity shares at an issue price of Rs 1.05 per share out of which Rs 0.05 is attributable to premium were approved by the Board.

Such preferential allotment, however, is subject to necessary approvals from shareholders and the concerned quarter. Therefore, the capital infusion through such measures is anticipated to support the growth plans of Srestha Finvest and enhance liquidity in the market.

Considering the objective of making shares available to small investors and enhancing liquidity in the stock market, the management has approved the splitting of every one equity share of a company into two, so it looks like a 1:2 split. The existing equity share of Rs 2 each shall be split into 2 shares of Re One each. This kind of stock subdivision will help extend the shareholder's population by targeting the ordinary investors on account of lower r Share Prices. The details regarding the record date for fixing the eligible shareholders will be notified in due course.

Impressive financial results for Srestha Finvest Ltd for the first quarter of FY25 indicate a total revenue growth of 1,634% YoY to Rs. 3,950 lakh from Rs. 227.80 in the same quarter of the previous fiscal FY2024. Net profit also rose from Rs. 43.90 Lakhs during quarter one of the last financial year to Rs 3100.62 Lakhs in the same quarter in FY2025 a rise of 6963% YoY.

Srestha Finvest Ltd was established in 1985. It is a Financial services company providing a diverse range of financial services like loan financing, investment etc.

The company qualifies as a Category B Non-Systemically Important Non-Deposit Accepting NBFC-Investment and Credit Company. The license permits Srestha Finvest to offer loans against collateral of securities, movable or immovable property, and other assets. The company also provides hire purchase and leasing, as well as engages in trading business.