Penny Stock Under Rs 6 Hits Upper Circuit As Board Gives Nod To Rights Issue

Shares of small cap stock priced under Rs 6, Advik Capital Ltd on Monday hit 5% upper circuit soon after its board gave approval to rights issue. Current market price of Advik Capital share is Rs 2.59 apiece after an intraday jump of 4.86%. Advik Capital stock rallied 22% in last 1-week, declined 26% in last 1-year, and gained 354% in last 3-years. Check details below:

Advik Capital Board Approves Rights Issue: According to the exchange filing of Advik dated September 2, "Pursuant to the above, we wish to give Intimation of Record Date as per Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") for the purpose of determining the shareholders entitled for Rights Issue as per details: the record date is fixed September 7, 2023 for the purpose of determining the shareholders entitled for Rights Issue"

Earlier on September 2 board of directors considered and approved terms of rights issue. As per the exchange filing, "Pursuant to the shareholder approval obtained through postal ballot on May 18, 2023 and Draft Letter of Offer dated July 18, 2023 submitted for obtaining 'In Principle Approval' for proposed Right Issue of up to Rs. 49.95 Crore, and 'In Principle Approval' received from BSE Limited vide its letter bearing No. LOD/Rights/AB/FIP/446/2023-24 dated August 08, 2023."

"The company board has fixed the issue price Rs 2.4 per equity shares and the record date for the purpose of determining the shareholders entitled for rights issue has been fixed as Thursday, September 7, 2023," added the BSE filing.

The rights issue is scheduled to open on September 18 and will end on September 29. Last Date for on market renunciation of rights entitlement has been fixed as Tuesday, September 26.

Earlier this year, Advik's board approved the rights issue amounting to Rs 50 crore in a single tranche in April, 2023. Shareholders of the company approved the same in May 2023. The approval from the exchange (BSE) was received earlier this month.

Advik Capital Stock Performance & Return: Current market price of Advik Capital stock is Rs 2.59 per share on BSE. Its 52-week high price is Rs 5.16 apiece and 52-week low price is Rs 1.96 apiece, respectively. Its market capitalisation is Rs 57.03 crore. Advik Capital stock witnessed a decline of 40% in last 6-months, offered return of 31% in last 2-years, and gained 354% in last 3-years.

Advik Capital Financials: The company for the quarter ended June 30, 2023 announced its consolidated total income at Rs 152.86 crore, down 33.22% as against its last quarter total income of Rs 228.89 crore. It announced its recent quarter net profit after tax at Rs .70 crore.

Disclaimer

The stock just upper circuit and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for ay losses. Please consult a professional advisor.