Penny stock jumps despite stock market sell-off; here's why

Penny stock: Shares of Salasar Techno Engineering Ltd rose nearly 3% on Tuesday, October 14, despite the Sensex and the Nifty 50 ending in the red, continuing their losses for a second consecutive session.

Salasar Techno Engineering informed the exchanges that the company's Finance Committee on Monday, October 13, decided to convert 2,11,80,000 warrants into an equal number of equity shares.

Salasar Techno Engineering share price

The steel structure manufacturer's shares closed 3.01% higher at ₹8.90 after Tuesday's market session. Salasar Techno Engineering's share price opened at ₹8.57 per share on the BSE on Tuesday. The company made the announcement of the conversion of warrants to equity shares after market closing hours on Monday.

Conversion to equity shares

The company approved the allotment of 2,11,80,000 fully paid-up equity shares of Re 1 each, resulting from the conversion of an equal number of fully convertible warrants at an issue price of ₹14.40, which includes a premium of ₹13.40.

Salasar Techno Engineering, in an exchange filing, said that the Finance Committee has “considered and approved the allotment of 2,11,80,000 fully paid-up equity shares of face value of Re. 1/- each, pursuant to conversion of 2,11,80,000 fully convertible warrants into said equal number of equity shares at an issue price of Rs. 14.40/- (including a premium of Rs. 13.40/- each).”

Indian stock market on Tuesday

The Sensex and the Nifty 50 declined for the second straight session amid ongoing worries about escalating trade tensions between the US and China. The Sensex closed at 82,029.98, dropping 297 points or 0.36%, while the Nifty 50 fell by 82 points, or 0.32%, ending at 25,145.50.

The mid and small-cap segments underperformed, with the BSE Midcap and BSE Smallcap indices falling by 0.74% and 0.95% respectively.

The total market capitalisation of firms listed on BSE declined to ₹459 lakh crore from ₹462.5 lakh crore in the previous session, wiping out over ₹3 lakh crore for investors in just one session.

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