Penny stock under ₹5: Financial stock jumps over 4% after new business adoption move

Sunshine Capital share price jumped over 4% on Wednesday after the company announced plans to enter in new business ventures. Sunshine Capital is a penny stock under ₹5 which spiked as much as 4.25% to ₹2.45 apiece on the BSE.

Sunshine Capital said its Board of Directors on Wednesday evaluated and approved the venture into the Mutual Fund distribution business and has also resolved to adopt best fintech practices to enhance market penetration and operational efficiency.

“There is a growing demand for diverse investment opportunities, which is expected to drive additional revenue streams for the company… The Board expects the Company to tap into this rapidly expanding market by providing investors with a wide range of mutual fund products, thereby enhancing the service offerings and contributing to the company’s growth trajectory,” Sunshine Capital said in a BSE filing.

The company also said its board is optimistic of the disruptive potential of fintech and digital technologies, and has approved a plan to integrate these technologies, which will focus on implementing digital platforms to improve customer access and streamline operations for both Mutual Fund distribution and Insurance broking businesses.

“By incorporating fintech, the Board expects the Company to enhance its market reach, reduce operational costs, and optimize processes, ultimately providing a competitive edge and superior customer experience,” said the company statement.

Moreover, Sunshine Capital’s board further resolved to carry on comprehensive branding initiatives for both the Mutual Fund distribution business and the previously discussed Insurance broking business.

It also discussed and resolved to proactively seek out new opportunities within the customer-focused financial sector.

Earlier this month, the non-banking finance company (NBFC) had announced its foray into Insurance Broking Business.

Sunshine Capital share price history

Sunshine Capital share price has fallen over 7% in one week and more than 5% in the past one month. Sunshine Capital is a smallcap stock and commands a market capitalisation of ₹1,260.23 crore on the BSE.

At 1:50 pm, Sunshine Capital shares were trading 0.85% higher at ₹2.37 apiece on the BSE. 

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