Penny stock under Re 1: Penny stock under Re 1 Auri Grow India was locked in the 5% upper circuit of ₹0.87 on Wednesday, December 17, after Hong Kong–based FII Luminary Crown issued a Letter of Intent (LoI) to explore acquiring up to 24% equity in the company.
The proposed deal indicates a price of ₹2 per share, significantly higher than Auri Grow India’s ₹0.84 market price on December 16, offering a sizable premium.
Today is the 12th straight session of gains for the penny stock, which has soared 74% during this period. In December, it has been in the red in just one session.
The LoI outlines a potential investment through primary issuance by preferential allotment, subject to regulatory, statutory and shareholder approvals. Auri Grow, listed on the NSE as AURIGROW, operates in high-growth agriculture, agri-technology and export-focused sectors, and views the proposal as an opportunity for strategic capital infusion and partnership.
Auri Grow India: LoI Details
Luminary Crown has also sought the right to nominate one director to the board as part of its proposed minority investment, although Auri Grow clarified that the governance rights are limited to standard investor protections and do not imply any change in management control.
Commenting on the development, Director Pratik Kumar Patel said, “The LoI is non-binding and indicative in nature. No definitive agreements have been executed at this stage. The receipt of this LoI represents a strong strategic interest in the Company’s transformation into a high-growth agriculture, agri-technology and export-oriented enterprise, and reflects growing external confidence in the Company’s long-term vision and asset base.” He added that the company would continue making required disclosures to the exchanges as material developments occur.
LoI also outlines 3 key strategic collaboration initiatives
1. Rice Aggregation, Processing & Export: The collaboration proposes strengthening Auri Grow’s participation in rice aggregation, processing and export, targeting key markets in the GCC and select European regions. The plan aims to create a scalable, export-oriented agri platform leveraging India’s competitive edge in rice exports.
2. Hydroponics & Aeroponics Farming Project: Luminary Crown intends to spearhead a hydroponics and aeroponics farming project focused on sustainable, technology-driven agriculture. The project carries an estimated cost of around ₹55 crore and is projected to generate annual revenues of ₹180–200 crore, with an indicative net margin of about 13%, depending on market conditions. The initiative is designed to boost productivity and significantly strengthen Auri Grow’s footprint in high-value, premium agriculture segments.
3. Organic Farming on Company Land Bank: The LoI includes establishing organic farming operations on Auri Grow’s land parcels for a minimum five-year tenure, with commercial terms to be mutually finalised.
Auri Grow’s financial performance has strengthened sharply, with FY24–25 sales rising to ₹175.55 crore, compared with ₹16.76 crore in FY23–24, marking nearly tenfold growth. Net profit for FY25 climbed to ₹7.17 crore, up from ₹51 lakh a year earlier, underscoring the company’s rapid operational expansion.
Auri Grow share performance
The penny stock has lost 32% in the last 1 year. However, in recent times, it has performed better. It jumped 73% in six. months, 43% in three months, and 56% in the last one month.
Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
