Penny Stock Under Rs 5 Declares 1:2 Stock Split After 75% YTD Gain

Srestha Finvest Limited has announced a proposed stock split, pending shareholder and regulatory approval. Each existing Rs 2 face value share will be split into two Re 1 face value shares. This initiative aims to enhance market liquidity, broaden the shareholder base, and make shares more accessible to small investors. The company expects to complete this process within approximately two months.

Srestha Finvest has also partnered with Felix Industries Ltd. to advance renewable energy and sustainability initiatives. Under a new facility agreement, Srestha Finvest will provide funding for Felix's capital work on plant installation. Felix has secured an order from Aarti Industries Ltd for a renewable energy, clean water, and water recycling project, with a total value of Rs 50 million, funded in two phases. This arrangement aims to provide robust financial support to Felix's renewable energy and water segment projects, fostering sustainability and marking a significant move towards green environment and sustainable initiatives.

In a strategic move, Srestha Finvest has subscribed to 75% of the equity shares of its newly incorporated subsidiary, Srestha Greentech Private Limited (SGPL), for a total consideration of Rs 37,50,000. SGPL, established on July 30, 2024, will operate in real estate, civil engineering, project management, and green technology projects, including EPC contracts, waste management, and infrastructure development. This acquisition, categorized as a related party transaction, does not require governmental approvals or a specific timeline. While SGPL's business may be outside Srestha Finvest's primary focus, this acquisition aims to diversify into the growing green technology sector and leverage potential synergies.

In May, Srestha Finvest announced its Q4 FY2024 results. According to an exchange filing, the company's operating revenue for Q4 FY2024 was Rs 5.63 crore, compared to Rs 3.35 crore in the previous quarter and Rs 69 lakh in Q4 of the last financial year. The company also reported a profit before tax of Rs 5.19 crore in Q4 FY2024, a significant turnaround from a loss of Rs 46 lakh in Q3 FY2024 and a loss of Rs 4.59 crore in Q4 of the previous financial year. The net profit for Q4 FY2024 was Rs 5.06 crore.

Srestha Finvest Limited is a public limited company registered with the Registrar of Companies, Tamil Nadu, with its registered office in Chennai. The company's primary businesses include lending money against securities, movable and immovable properties, finance, hire purchase, and leasing. Srestha Finvest's shares are listed on the Bombay Stock Exchange Limited and the Metropolitan Stock Exchange Ltd. It is a Category 'B' Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India and does not accept public deposits. The company has no other subsidiary companies.
Srestha Finvest's recent initiatives, including the proposed stock split, strategic investment in SGPL, and partnership with Felix Industries, underscore its commitment to enhancing shareholder value and diversifying its business portfolio.