Penny Stock Below Rs 5 Announces Rights Issue And Expansion Into Supply Chain Financing

Today, shares of Advik Capital Ltd, a leading Non-Banking Financial Company (NBFC), rose by 0.33% to Rs 3.02 per share, up from the previous close of Rs 3.01. The stock has seen a significant increase of 55.7% from its 52-week low of Rs 1.94, with a 52-week high of Rs 4.35.

Advik Capital has announced a rights issue of up to 19,98,05,013 fully paid-up equity shares at Rs 2.50 per share, which includes a premium of Rs 1.50. The record date for this rights issue is set for September 12, 2024, with the entitlement ratio fixed at 14:30. The subscription period will run from September 24, 2024, to October 4, 2024. Upon full subscription, the company's outstanding equity shares will increase from 42,81,53,600 to 62,79,58,613 shares, providing a strong foundation for future growth and expansion.

As part of its diversification strategy, Advik Capital is making a strategic entry into the supply chain financing market. This initiative is designed to offer financial solutions to businesses across various sectors, including agriculture, FMCG, FMCD, metals, and engineering goods. The move is aimed at enhancing operational efficiency and promoting sustainable growth within these industries.

In a key development, Advik Capital has signed a Memorandum of Understanding (MoU) with a prominent agri-product FMCG company to support its supply chain financing operations. While the name of the partner remains confidential, this collaboration lays the groundwork for Advik Capital's future expansion in the sector. The initiative will offer customized financial products, infrastructure support, and expert technical assistance, with a special emphasis on sustainability.

By directly financing suppliers, Advik Capital seeks to reduce dependency on traditional product lines and broaden its operational scope. This strategic expansion will not only diversify the company's operations but also enable it to better navigate market fluctuations, ensuring long-term sustainable growth.

In July, Advik Capital, announced its financial results for the first quarter of FY 2024-25, reporting a remarkable 140% increase in net profit. According to the company's exchange filing, net profit for the quarter ending June 2024 rose to Rs 2.22 crore, compared to Rs 0.91 crore in the same period last year. Net sales also grew by 11.18%, reaching Rs 4.97 crore, up from Rs 4.47 crore in June 2023. Revenue from operations stood at Rs 4.96 crore, compared to Rs 4.46 crore in the first quarter of the previous year. EBITDA saw a significant jump of 60.69%, reaching Rs 4.66 crore, up from Rs 2.90 crore in June 2023.

With total assets of Rs 200 crore, Advik Capital is working towards achieving the status of a Systemically Important Non-Banking Financial Company (SIB-NBFC) by 2025. To meet this goal, the company is executing an ambitious expansion strategy. This includes entering new sectors such as healthcare, optimizing existing business lines, and strengthening its operations with the help of industry experts in risk management, operations, governance, and technology.

Advik Capital remains committed to advancing financial inclusion and supporting business growth through innovative financial solutions.