1300% return in five years! Multibagger stock to be in focus on Wednesday; here's why

Multibagger stock: Shanti Educational Initiatives share price will remain in focus on Wednesday, March 4, after the company's board approved the proposed scheme of arrangement between Shanti Educational Initiatives Limited (SEIL) and Shanti Learning Initiatives Private Limited (SLIPL) and GREW Energy Private Limited (GEPL).

Shanti Educational Initiatives share price ended in the green on Monday, despite the Indian stock market crashing over 1% amid rising geopolitical tensions in the Middle East. The multibagger stock eked out 0.50% gain to end at ₹198.95 apiece.

Shanti Educational Initiatives' scheme arrangement details

In a press release dated March 2, the company said that the scheme proposes, in its first stage, a slump sale of the business undertaking from SEIL to SLIPL, in exchange for the issuance of shares by SLIPL to SEIL, with the valuation determined by an independent valuer.

In the second stage, SEIL will be amalgamated with the company, under which GEPL will allot shares to SEIL’s shareholders based on an independently determined share exchange ratio.

GEPL, a venture of the Chiripal Group, is among India’s rapidly expanding solar PV manufacturers. The company operates a 6.5 GW PV module manufacturing facility in Dudu, Rajasthan, with plans to scale up capacity to 11.0 GW. It is also establishing an 8.0 GW solar PV cell and ingot-wafer plant in Narmadapuram, Madhya Pradesh. GREW manufactures high-efficiency N-type TOPCon solar modules based on G12R and M10R technologies, engineered for dependable performance across utility-scale, commercial, industrial, and rooftop projects. With a strong emphasis on quality and sustainable manufacturing, GREW Solar is supporting India’s clean energy transition.

SEIL specialises in delivering strategic solutions to a broad spectrum of educational institutions, ranging from preschool to postgraduate levels. The company also provides services for the establishment and management of schools, catering to the needs of aspiring learners and institutions.

The board has approved the share exchange ratio for the proposed merger following a comprehensive valuation exercise conducted and recommended by two independent registered valuers, M/s Finvox Analytics and A N Gawade.

Under the approved ratio, SEIL shareholders will receive 100 fully paid equity shares of face value ₹1 each in GEPL for every 212 fully paid equity shares of face value ₹1 each held in SEIL.

Ernst & Young (EY) and P. Murali Consultants acted as transaction advisors to the proposed deal.

“This proposed merger marks a significant milestone in our broader group restructuring initiative. It is a strategic step towards reorganising, consolidating and streamlining the corporate structure, resulting in greater operational efficiency and implementing smoother and more effective controls and processes. The proposed merger is not merely a structural consolidation, but a strategic realignment designed to accelerate value creation. The listing of the company will provide enhanced transparency, institutional credibility, and a robust foundation for sustainable expansion," said Vinay Thadani, CEO & Director, GREW Energy Private Limited.

Shanti Educational Initiatives' share price trend

The multibagger stock has delivered significant returns in both the short and long term despite weak market sentiments.

Shanti Educational Initiatives share price has gained 12.40% in the past five sessions and 34.56% in a month.

Zooming out further, the stock has impressed long-term investors by surging as much as 75% in six months and 149.22% in a year.

The stock has multiplied investors' money by giving multibagger returns of 1,321% in five years.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.