Multibagger penny stock: Elitecon International, an erstwhile penny stock that has seen its shares rally from near ₹1 level to over ₹75 currently, announced post-market trading hours on Friday that its board will meet next week to consider certain business matters, including fundraising of about ₹300 crore, preferential share issue and acquisition of an overseas company.
Elitecon International, in an exchange filing, said that a board meeting is scheduled to take place on Wednesday, July 9. As per the details of the filing, the company’s board will consider the acquisition of an overseas business entity.
Additionally, the penny stock’s board will also take up the matter of fundraising of ₹300 crore via qualified institutional placement (QIP).
“…Raising of funds by issue of Equity Shares through Qualified Institutions Placement (“QIP’) for an aggregate amount up to Rs.300,00,00,000/- (Rupees Three Hundred Crores Only) or an equivalent amount thereof (inclusive of such premium or discount as may be fixed on such Equity Shares) subject to the receipt of approval of the Members of the Company and such other approval(s)/ permission(s)/ consent(s)/ sanction(s) of any government/ regulatory/ statutory authorities, as may be required,” the company’s filing with the stock exchanges stated.
The third item on the agenda pertains to the issue of equity shares on a preferential basis.
“Issue of Equity Shares on Preferential basis in accordance with provisions of Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable rules, regulations and guidelines of SEBI and applicable provisions of Companies Act, 2013,” Elitecon said.
Elitecon International Share Price Trend
Ahead of the announcement, shares of Elitecon International ended at their 52-week high of ₹76.80 apiece on the BSE, which was also its upper price band of 5%.
The multibagger penny stock had opened the day at this level and was stuck in it throughout the trading day. The company with a market cap of over ₹12,275 crore has seen its shares skyrocket from ₹1.10 (also its 52-week low) towards the end of August 2024 to its current level, offering a return of 6,882% to its investors.
In the last month alone, Elitecon International share price is up 25% while it has added 66% to its value in six months.
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