Small-cap stock hits record high, touching upper circuit after Ashish Kacholia, Mukul Agrawal’s fresh stake buying

Small-cap stock Concord Control Systems surged to its 5 per cent upper circuit to reach a record high of ₹1,870.40 in intraday trading on the BSE on Tuesday, September 3, a day after the company announced its board of directors had approved a proposal to issue 3,18,472 equity shares to the public (non-promoter) category on a preferential basis. Among the proposed allottees of shares are ace investors Ashish Rameshchandra Kacholia and Asha Mukul Agrawal (Mukul Agrawal's wife).

According to the exchange filing, the company's board approved the preferential issue of 3,18,472 fully paid-up shares of the face value of ₹10 each at the issue price of ₹1,570, including a security premium of ₹1,560, aggregating up to ₹50 crore.

Shares of the company opened at their 5 per cent upper circuit of ₹1,870.40 on Tuesday and remained locked at that level.

Apart from Kacholia and Agrawal, the company issued shares to two other non-promoter entities, Opuleny Advisors and Consultants LLP and Everest Finance & Investment Co.

As per the exchange filing, the stakes of the four proposed allottees after the issuance will be as follows:

1. Ashish Rameshchandra Kacholia has been offered 76,433 shares or a 1.21 per cent stake.

2. Opuleny Advisors and Consultants LLP has been offered 70,064 shares or a 1.11 per cent stake.

3. Asha Mukul Agrawal has been offered 95,542 shares or a 1.52 per cent stake.

4. Everest Finance & Investment Co. has been offered 76,433 shares or a 1.21 per cent stake.

Overall, the company has offered a 5.05 per cent stake to these non-promoter entities for ₹50,00,01,040.

Concord Control Systems' shareholding pattern

The March quarter shareholding data of Concord Control Systems shows Mukul Mahavir Agrawal held 2,40,000 shares or 4.01 per cent stake in the company. The fresh allotment of shares has been made to his wife Asha Mukul Agrawal.

On the other hand, Ashish Kacholia's name does not appear in the March-quarter shareholding data. However, it is not clear whether this is the first time Kacholia will hold the company's shares, as exchange rules say companies need not reveal the names of shareholders if their stake is less than a per cent. So, there are two possibilities- either Kacholia had a stake of less than 1 per cent in the company, or this is the first time he will hold company shares.

Concord Control Systems share price trend

Shares of Concord Control Systems have seen a solid uptrend over the last year. The stock has surged nearly 300 per cent in the last one year. The stock hit its 52-week low of ₹470 a year ago on September 4, 2023. At the current market price of ₹1,870.40, it has surged 298 per cent from its 52-week low.

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