Multibagger Penny Stock Hit 5% Upper Circuit As Board To Consider 100% Acquisition Plan

On the closing session of Monday, the shares of penny stock Paramount Communications ended at an upper circuit limit of Rs 56.08 apiece up by 5% over the previous close of Rs 53.50. The rally in stock price was witnessed after the company announces that the Board of Directors to consider the proposal for the acquisition of 100% equity shares of Valens Technologies Pvt Ltd from its existing shareholders.

"This is to inform you that the meeting of Board of Directors of the company is scheduled to be held on Wednesday, 23rd August, 2023, to consider the proposal for acquisition of 100% equity shares of Valens Technologies Private Limited from its existing shareholders," said Paramount Communications in a stock exchange filing.

Another reason for the stock price spike is the announcement of the allocation of new warrant issuance worth Rs 9.76 Cr. "Pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we wish to inform that the Share Allotment Committee of the Board of Directors of the Company, in its meeting held on August 14, 2023, has allotted 45,25,000 equity shares of face value Rs. 2/- each to the warrant holders belonging to Non-Promoters on exercise of warrants which was issued to them at the price of Rs 21.57 per warrant," said Paramount Communications in a stock exchange filing.

Paramount Communications' share price today opened upside and went on to hit the upper circuit at Rs 56.17 on BSE. The stock closed today at Rs 56.08 with an upside gap of 4.82% over the previous close of Rs 53.50. The stock made a 52-week-high of Rs 57.97 on (18/08/2023) and a 52-week-low of Rs 13.65 on (19/08/2022), indicating that at the current market price, the stock is trading 3.26% below the recent 1-year high and 310.84% above the 1 year low.

The stock price has climbed from Rs 13.95 to the current market price in the previous 5 years, resulting in a multibagger return of 305.42%. The stock price has risen from Rs 8.54 to its current market price in the previous three years, resulting in a multibagger return of 530.90%. The stock price went up from Rs 15.42 to the current market price in 1 year, resulting in a multibagger return of 280.68%. On a YTD basis, the stock has gained 53.43% so far in 2023. During Q1FY24, the company recorded promoters shareholding of 63.90% and public stake of 36.10%.