Shares Of Srestha Finvest In Focus Ahead of 2:1 Stock Split Scheduled On September 23

Shares of Srestha Finvest Ltd. saw a 4.09% surge today, surging from Rs 1.71 to Rs 1.78 per share. The stock, which hit a 52-week high of Rs 2.56 and a 52-week low of Rs 0.98, currently has a market capitalization of Rs 145.96 crore.

Srestha Finvest recently informed stock exchanges that the company's board has approved a 2:1 stock split, with the record date set for September 23, 2024. This stock split aims to increase liquidity and make the shares more affordable to retail investors. In an exchange filing, the company stated, "Srestha Finvest Limited ('the Company') has fixed Monday, September 23, 2024, as the 'Record Date' for the purpose of determining the eligibility of shareholders of the Company for Sub-division/Split of each fully paid-up equity share having face value of Rs. 2/- each into 2 fully paid equity shares having Face value of Rs. 1 each."

In addition to the stock split, Srestha Finvest has announced plans to raise up to Rs 200 crore through the issuance of equity shares via Qualified Institutional Placement (QIP). According to a filing with stock exchanges, "Raising of funds by way of issuance of such number of equity shares having face value of Re.1 each of the Company, for an aggregate amount not exceeding Rs. 200 Crores by way of Qualified Institutional Placement (QIP)."

QIP is a mechanism that allows listed companies to raise funds from institutional investors such as Qualified Institutional Buyers (QIBs).

Srestha Finvest reported impressive financial results for the first quarter of FY2024-25. The company's operating revenue for the quarter ending June 30, 2024, reached Rs 39.5 crore, a significant jump from Rs 2.27 crore in the same period last year. This represents a 1,632.46% increase in sales. Additionally, the company's revenue from operations in the previous quarter was Rs 5.63 crore.

Net profit also saw a significant rise, reaching Rs 31.01 crore in Q1 FY2024-25, compared to Rs 0.44 crore in the previous quarter ending June 2023. For comparison, Srestha Finvest's net profit in the fourth quarter of FY2024 was Rs 5.06 crore.

Established in 1985, Srestha Finvest Ltd. is a multifaceted financial services company that offers a wide range of solutions, including loans, financing, and investment opportunities. The company operates under a Category B Non-Systematically Important Non-Deposit Taking NBFC (Non-Banking Financial Company) - Investment and Credit Company license, which allows it to offer a variety of financial services. These include loans secured by various assets, hire purchase and leasing options, as well as trading and investment in shares.

Srestha Finvest focuses on providing secured loans backed by securities and properties (both movable and immovable). The company has consistently expanded its services to cater to a growing customer base and has positioned itself as a trusted player in the financial services sector. Over the years, it has adapted to market changes while maintaining a strong regulatory framework.