LIC-Backed Penny Stock Below Rs 5 Integra Essentia Finalized 20:119 Rights Issue Allotment

Integra Essentia Limited finalized the allotment of its Rights Issue. The company received approval from relevant authorities including the stock exchange (BSE), Merchant Bankers, and Registrar to the Issue.

On July 1, 2024, the Board of Directors approved the issuance of 15,36,24,538 fully paid-up equity shares with a face value of Re 1 each for Rs 3.25 per share (including a premium of Rs 2.25 per share) to eligible applicants at a ratio of 20:119 (20 rights shares for every 119 existing shares).

This allotment increased the company's paid-up capital to Rs 106,76,90,544. For further details, refer to the Letter of Offer (LOF) dated May 28, 2024. This translates to a potential capital raise of Rs 49.93 crore.

Backed by public sector life insurance company LIC, Integra aims to achieve Rs 2,700 million in sales during this current financial year. LIC holds a substantial stake in the Delhi-based FMCG sector player. The state-run company under the administrative control of the Ministry of Finance owns more than 1 per cent stake in the firm.

Recently, the company secured fresh orders worth around INR 210 million in aggregate for its Agro and Infrastructure business segments. In the Infra segment, the company received orders for supplying High Tensile TOR Steel products. For the Agro segment, Integra Essentia received orders from renowned customers like Sarveshwar Foods Ltd and Sarveshwar Overseas Ltd for supplying agricultural products.

Earlier, the company informed exchanges that its net profit rose 250.30 per cent to Rs 5.92 crore in the quarter ended March 2024 as against Rs 1.69 crore during the previous quarter ended March 2023. Its sales rose 38.71 per cent to Rs 93.31 crore in the quarter ended March 2024 as against Rs 67.27 crore during the previous quarter ended March 2023. Meanwhile, Investors' wealth tumbled Rs 7.93 lakh crore in three days of market crash amid escalating tensions in the Middle East and weak global trends.

Integra Essentia is a diversified company based in Delhi, engaged in providing a wide range of life essentials catering to various segments of modern living. Integra has evolved itself through strategic acquisitions and expansions, transforming from its initial textile-focused operations to a multi-dimensional company.

The company was originally incorporated in 2007 as Five Star Mercantile Private Limited, then it underwent a series of name changes and corporate restructurings. In 2012, it amalgamated with Integra Division of Morarjee Textiles Limited and Morarjee Holdings Private Ltd through a composite scheme of arrangement and rebranded itself as Integra Garments and Textiles Limited.

On Tuesday, the shares of Integra Essentia were locked in a 2% upper circuit limit at Rs 4.06 apiece during the afternoon trade. The company left a market cap of Rs 429 Cr and the stock was last seen trading with a PE ratio of 28.1.