Multibagger Stock Unveils Acquiring 100% Equity Shares of VTPL For 19.8 Mn

The Board of Directors of Paramount Communications Ltd (PCL) at their meeting held on Wednesday, the 23rd Day of August 2023, has approved the acquisition of 1,93,996 equity shares of Valens Technologies Private Limited (VTPL) from its existing shareholders.

"This acquisition will give PCL a distinct advantage with their customers where PCL can offer bundled products. It also gives PCL a strong position in the telecom business while also adding market and product diversity in terms of water pipeline business where VTPL enjoys a strong reputation," said the company in a stock exchange filing.

The company is acquiring 100% equity shares of VTPL at an equity valuation of INR 1,97,87,592/- (i.e., Rs. 102 per equity share.) and the transaction will be completed by August 31st, 2023. As a result, VTPL will become a wholly-owned subsidiary of PCL.

The corporation recently disclosed the allocation of fresh shares totalling 9.76 crore. According to a statement from Paramount Communications, 45,25,000 equity shares with a face value of 2 rupees each have been distributed to warrant holders at a cost of 21.57 rupees apiece.

The company's standalone net sales in the June 2023 quarter were Rs 210.54 crore, up 28.6% from Rs 163.73 crore in the corresponding quarter in the previous year. The company's net profit for the first quarter of FY24 was Rs. 14.53 crore, up 106.85% from Rs. 7.03 crore in Q1FY23. EBITDA for the June 2023 quarter was Rs. 18.51 crore, up 77.47% from Rs. 10.43 crore in the same quarter of FY23.

On Thursday, the shares of Paramount Communications opened on the BSE at Rs 55.90 apiece. In the last 1 year the stock has generated a multibagger return of 237.59% and on a YTD basis the stock has gained 49.63% so far in 2023.