Multibagger stock: Small-cap stock hits record high after fundraise move. Rises 200% in one year

Multibagger stock: Power and Instrumentation (Gujarat) Ltd is one of the multibagger stocks that the Indian stock market has delivered in one year. This small-cap stock has risen from ₹41.60 to ₹121.90 apiece on the NSE, logging a nearly 200 percent rise. However, the multibagger stock still possesses some upside potential. The small-cap stock opened with an upside gap on Tuesday and touched an intraday high of ₹121.90 within seconds of the Opening Bell. While climbing to this intraday high, the multibagger stock locked in the upper circuit and hit a new lifetime high.

Power and Instrumentation fundraise

The small-cap company has declared fundraising by issuing preferential shares and warrants. The fundraiser would be worth ₹71.48 crore.

The small-cap company informed the Indian stock market exchanges about the fundraising move, saying, "The board has decided to issue up to 34,39,000 Equity Shares of ₹10 each at an issue price of ₹83.75 per share, including a premium of ₹73.75 amounting to ₹28.80 Crore. The shares will be issued to the Non-Promoter Group preferentially."

On issuance of equity warrants, Power and Instrumentation (Gujarat) Ltd said, “The company is issuing 50,96,000 Equity Warrants at ₹83.75 per warrant amounting to ₹42.68 Crore. These warrants will be issued to both the Promoter Group and Non-Promoter Group on a preferential basis. Among the 50,96,000 Equity warrants, 41,50,000 are issued to the promoter group, and the remaining 9,46,000 are issued to the non-promoter group.”

Acquisition of Peaton Electrical

"The company has decided to acquire a controlling stake in Peaton Electrical Company Limited, a manufacturer specializing in Electrical Panels, Compact Substations, and Bus Trunking Systems. This strategic acquisition aims to expand PIGL's footprint in the electricals market. Currently, PIGL holds a 15.23% stake in PECL and plans to increase its shareholding to up to 60%. The acquisition will be based on the valuation of PECL, with the consideration to be discharged by the share purchase agreement to be executed," the small-cap company added.

The small-cap company has a market cap of ₹151 crore, but its current trade volume on the NSE is slightly above 16,000. The low-float stock is available for trade on both the NSE and BSE. Its 52-week high is ₹121.90, which is also its lifetime high. Its 52-week low is ₹36.25 per share.

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