Logistic Stock NECC Surged 5% On Announcing Issue Warrants of Up To Rs 14.82 Cr

In the logistics industry, North Eastern Carrying Corporation (NECC) is a small-cap company. The BSE began the stock today at Rs 32.58 per share, but it quickly gained, reaching an intraday high of Rs 32.60 in the early trade, for a gain of 4.72%. The rise in the value of the company's shares following the release of its financial results for the quarter that ended on December 31, 2023, and the issuing of warrants valued at Rs 14.82 Cr.

The Board of Directors considered and approved "To issue upto 46,25,062 (Forty Six Lakhs Twenty Five Thousand and Sixty Two) equity shares/ warrants each convertible into, or exchangeable for, 1 (one) fully paid up equity share of the Company, having a face value of Rs. 10/-(Rupees Ten only) within the period of 18 (eighteen months) in accordance with the applicable laws ("Warrants") at a Price of Rs. 32.05 (Rupees Thirty Two and Five paisa Only) per equity share (including the warrant subscription price and the warrant exercise price) aggregating upto Rs. 14,82,33,237 (Rupees Fourteen Crores Eighty Two Lakhs Thirty Three Thousand Two Hundred and Thirty Seven only)," said North Eastern Carrying Corporation (NECC) in a stock exchange filing.

The issue has been approved for the promoter of the company and certain identified non-promoter persons by way of preferential issue. 39,55,062 shares amounting to Rs 12,67,59,737 has been allotted to Sunil Kumar Jain and 6,70,000 shares amounting to Rs 2,14,73,500 to Hemant Kumar Aggarwal.

"Convening of Extraordinary General Meeting ("EGM") of the Shareholders of the Company on Friday, the March 08, 2024 at 1:00 P.M. (IST) for the purpose of obtaining their approval to issue of Equity Shares on a preferential basis by way of a Special Resolution. The &-voting period will begins from Tuesday, March 05, 2024 (9.00 A.M.) and ends on Thursday, March 07 , 2024 (5,00 P.M.). The Company has fixed Friday, March 01, 2024 as the Cut-off date for determining the eligibility of members to vote in respect of items of business to be transacted at the EGM," said NECC in a regulatory filing.

North Eastern Carrying Corporation's net profit climbed 18.31% to Rs 2.52 crore in the quarter that ended in December 2023 compared to Rs 2.13 crore in the quarter that ended in December 2022. Sales for the quarter ended December 2023 jumped 18.66% to Rs 85.59 crore from Rs 72.13 crore in the corresponding quarter of the previous fiscal.