Penny Stock Below Rs 2 Jumps 10% On Fundraising Proposal of Rs 50 Cr: Do You Own?

In the financial services industry, Srestha Finvest Ltd. is a micro-cap company with a market capitalization of Rs 80 Cr. With its registered office in Chennai, Tamil Nadu, Srestha Finvest Limited is a public limited company that is registered with the Registrar of Companies in Tamilnadu. Lending money against securities, financing, hire purchase, immovable and movable properties, and leasing are the company's primary operations. The shares of the company are listed on the Metropolitan Stock Exchange Ltd. and the Bombay Stock Exchange Limited. The company is a category 'B' NBFC company, registered with the Reserve Bank of India.

Srestha Finvest's stock rose 9.60% from its previous close of Rs 1.25 during the closing session on Monday, after opening at the upper circuit limit of Rs 1.37. The rise in stock price occurred after Srestha Finvest Ltd. revealed that a board meeting is planned for December 19, 2023, to discuss a plan to raise up to Rs. 50 Cr.

"Pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the board meeting is scheduled to be held on December 19, 2023, to consider inter-alia the following business: 1. To consider and approve fund raising, for an aggregate amount not exceeding Rs. 50 Crores, in one or more tranches, in compliance with the applicable provisions of law. 2. Any Other business with the permission of the Chair," said Srestha Finvest in a stock exchange filing.

Shares of Srestha Finvest Ltd., one of the leading gainers on the BSE today, were stuck in a 10% upper circuit at Rs 1.25 a share from its previous closing of Rs 1.14. The scrip made a 52-week-high of Rs 1.47 on (01/09/2023) and a 52-week-low of Rs 1.47 on (01/09/2023).