Penny Stock Under Rs 1 Locked At 5% Upper Circuit On Rs Rs.100 Cr Fundraising Via QIP

Srestha Finvest shares got an impressive response on Thursday's session on the early deals as the stock opened the day at a 5% upper circuit limit at Rs 0.89 per share. The Board of Directors announced fundraising deals on October 09, 2024, and the penny stock under Rs 1 that has rocketed 39.06% YTD would be the focus of the upcoming sessions.

The Board of Directors of Srestha Finvest considered and approved the raising of funds by way of issuance of such number of equity shares having a face value of Re.1/- each of the company, for an aggregate amount not exceeding Rs.100 Crores by way of Qualified Institutional Placement (QIP).

The proceeds from the QIP shall be used for any of the following objectives of the company, i.e. for pre-payment and/or repayment of debts, working capital requirements, general corporate purposes and such other purpose(s) as may be permissible under applicable laws, according to Srestha Finvest.

The Board of the company also approved to issue of upto 93 Cr equity shares of Re.1/- each at an issue price of Rs. 1.05/- each including the premium of Rs. 0.05/-each to the Investors on a preferential basis. Sneha Bhandari, Sunil Bhandari, Financial World India Private Limited, Mayoga Investments Limited, Momento Fabric Fashions Private Limited, Jainex Compuware Manufacturing Private Limited, Kamlesh Vajubhai Nandaniya, Aryadeep Tie-Up Private Limited, Kiwi Delcom Private Limited, Ayodhya Vincom Private Limited, Simplicity Trading, Swastik Trading, Oswal Industries Limited, Alok Kumar, Alok Kumar HUF, Base Engineering LLP, Pratibha Jain, Naina Singh, Rubina Khan and Mukesh Sharma are the number of allottees whom 93,00,00,000 shares have been allotted under the preferential issue.

The Board of Directors considered and approved "Increase in the borrowing limits of the Company upto Rs.500.00 Crores (Five Hundred Crores) in terms of Section 180(1)(c) of the Companies Act, 2013, subject to approval of members," said Srestha Finvest in a stock exchange filing.

Earlier on Monday, September 23, 2024 the shares of Srestha Finvest reached record date for ' 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 be sub-divided into 2 fully paid equity shares having face value of Rs.1/-.

The firm made a profit of Rs. 173.86 lakhs in the fiscal year 2023-2024, as opposed to a loss of Rs. 497.41 lakhs in the preceding year, 2022-2023. The company transferred Rs. 37.51 lakhs, or 20% of its net profit for the year under review, to statutory reserves as required by the Reserve Bank of India. In 2023-2024, the company preferentially awarded 25,00,00,000 equity shares with a face value of Rs. 2/-each to specially selected Non-Promoter Public Category individuals. Consequently, the company's paid-up equity share capital increased to Rs. 1,16,00,00,000/-, which was then split into 58,00,00,000 fully paid equity shares, each worth Rs 2/-. The company used all of the money from the preferential offering of 25,00,00,000 equity shares for the planned objectives.

Founded on July 22, 1985, Srestha Finvest Limited (formerly named M S Investments Ltd) is a non-banking financial firm. The company offers loans, finance, and investments as a non-banking financial corporation (NBFC). The market value of the company is Rs 145.96 Cr.