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Business News/ Markets / Stock Markets/  Penny stock below 5: GGPL shares hit upper circuit despite HDFC Bank selling 2.9 lakh shares
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Penny stock below ₹5: GGPL shares hit upper circuit despite HDFC Bank selling 2.9 lakh shares

Penny stock below ₹5 is one of the circuit-to-circuit stocks on Dalal Street

Circuit-to-circuit stock: GGPL share price today hit 5% upper circuit after hitting lower circuit on three days in a row. (Photo: Reuters)Premium
Circuit-to-circuit stock: GGPL share price today hit 5% upper circuit after hitting lower circuit on three days in a row. (Photo: Reuters)

Penny stock below 5: Shares of Gala Global Products Ltd (GGPL) are one of the circuit-to-circuit stocks in the Indian stock market. The small-cap stock has been hitting new 52-week lows for the last few days. However, the micro-cap stock with a market cap of 16.81 crore is news today for a bulk deal executed on the first trade session of the new financial year 2024-25. The bulk deal was executed by India'sbanking major HDFC Bank Limited. As per the information available on the BSE website, HDFC Bank sells out 2,89,907 or around 2.90 lakh company shares on Monday. HDFC Bank sold out these GGPL shares at 2.84 apiece. Interestingly, GGPL share price touched a new 52-week low of 2.80 per share on Monday when it hit a 5 percent upper circuit during Monday deals.

However, bulls' remained a little bothered after the spread of this bulk deal news. In the early morning session on Monday, GGPL share price opened upside and went on to touch an intraday high of 3.08 per share on BSE. After climbing to this intraday high, GGPL shares went on to lock in a 5 percent upper circuit as well during the early morning session on Tuesday.

HDFC Bank offloading company shares

As mentioned above, HDFC Bank Limited sold out 2,89,907 shares of the GGPL at 2.84 apiece. This means HDFC Bank Limited sold out GGPL shares worth 8,23,335.88 or 8.23 lakh. However, it is difficult to ascertain whether HDFC Bank sold out its entire stake in the company or it still holds some company shares. As per the exchange filing rule, a listed company must share the names of all individual shareholders who own one percent or more company shares. As per the shareholding pattern of GGPL for the October to December 2023 quarter, HDFC Bank Limited name is missing from the list of individual shareholders. This means the Indian baking major holds less than a 1 percent stake in the company.

Circuit-to-circuit stock

As mentioned above, the penny stock below 5 is one of the circuit-to-circuit stocks in the Indian stock market. Last week, this small-cap stock below 5 witnessed a spurt in volume on 26th March 2024 i.e. on Tuesday. On Wednesday, the penny stock below 5 touched a new 52-week low of 3.09 apiece when it hit a 5 percent lower circuit. The micro-cap stock went on to hit a 5 percent lower circuit on the following sessions on Thursday and Monday making new 52-week lows on two straight sessions. However, bottom fishing took place today and the stock bounced back strongly and touched 5 percent upper circuit on Tuesday.

Corporate history

As per the information available on the BSE website, the small-cap penny stock has a history of rewarding its shareholders from the capital reserves of the company. The stock traded ex-bonus and ex-split on 10th May 2018. The company board had declared in 2018 about the issuance of 1:20 bonus shares and a 1:2 stock split. This was the second time when the small-cap stock declared bonus shares. On 10th November 2017, the small-cap stock was traded ex-bonus to ascertain the eligible shareholders for issuance of 1:20 bonus shares.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 02 Apr 2024, 02:01 PM IST
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