Penny Stock Below Rs 5 Zooms 20% After Announcing Record Date For Rs. 48,00,00,000 Rights Issue

On Tuesday, the shares of Srestha Finvest opened on the BSE at Rs 2.06 apiece and rallied to an intraday high of Rs 2.17 logging a gain of 19.89% over the previous close of Rs 1.81. The rally in the stock price was witnessed after the Board of Directors announced the record date for the right issue in a 12:29 ratio for an aggregate amount of Rs. 49,00,00,000.

"The Board of Directors at its meeting held today has fixed Friday, June 21, 2024 as the record date for the purpose of determining the equity shareholders who shall be entitled to receive the Rights Entitlement in the Rights Issue.Further, in terms of SEBI Circular SEBI/HO/CFD/DIL2 /CIR/P/2020/l 3 dated January 22, 2020, the Company has made necessary arrangement with NSDL and CDSL for the credits of the Rights Entitlements in dematerialized form in the demat account of the eligible equity shareholders as on the Record Date. The Rights Entitlement of the eligible equity shareholders as on the Record Date, shall be credited prior to the issue opening date, in the respective demat account of the eligible equity shareholders," said Srestha Finvest in a regulatory filing on June 18, 2024.

24,00,00,000 equity shares of face value of Rs. 2.00/- each at par for an amount aggregating of Rs. 48,00,00,000/- is the total number of securities proposed to be issued via rights issue at a issue price of Rs 2.

Thursday, July 04 ,2024 is the rights opening date, Friday, July 12 ,2024 is the last date for on market renunciation of rights entitlement and Thursday, July 18, 2024 is the right issue closing date of Srestha Finvest.

58,00,00,000 equity shares of Rs. 2.00/- each is the outstanding equity shares prior to the rights issue and 82,00,00,000 equity shares of Rs. 2.00/- each is the outstanding equity shares post right issue (assuming full subscription).

Srestha Finvest recorded a net profit of Rs 5.06 crore for the quarter that ended in March 2024, compared to a net loss of Rs 4.61 crore for the quarter that ended in March 2023. Sales jumped from Rs 0.70 crore in Q4FY23 to Rs 5.64 crore in Q4FY24, a 705.71% surge. In the fiscal year that ended in March 2024, net profit was recorded at Rs 1.74 crore, compared to a net loss of Rs 4.97 crore in the year prior that ended in March 2023. Sales jumped from Rs 2.75 crore in FY23 to Rs 12.75 crore in FY24, a 363.64% jump.

With its registered office in Chennai, Tamilnadu, Srestha Finvest Limited is a public limited company that is registered with the Registrar of Companies in Tamilnadu. Lending money against securities, funding, hire purchase, immovable and immovable 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.