Small-cap stock under ₹50 hits 5% upper circuit after this ₹500 crore acquisition update

AVI Polymers, a penny stock, was locked at its 5% upper circuit limit in Thursday's trade, 7 May, settling at ₹24.25 apiece and extending its winning run to the 16th straight session after approving the acquisition of a 90% stake in JVTR Consultants Private Limited through a share swap arrangement at an indicative valuation of ₹500 crore.

Through this acquisition, the company said it aims to strengthen its position in the fast-growing technology sector and expand beyond its traditional business operations.

The company is focusing on areas such as information technology services, software development, system integration, digital platforms, and related technology solutions and believes that this strategic expansion will create new growth opportunities and support its vision of building a diversified business portfolio.

According to the company, the proposed transaction is subject to completion of due diligence, finalization of transaction terms, and necessary approvals from shareholders and regulatory authorities.

In line with this expansion strategy, the company has also approved the addition of new business activities in its Memorandum of Association related to digital and technology-focused business activities, subject to shareholder approval.

Commenting on the development, Chintan Yashwantbhai Patel, Managing Director of AVI Polymers Limited, said, “This acquisition marks an important step in the company’s growth journey as we expand into the technology and digital services sector.”

"We see strong opportunities in technology-driven businesses and believe this strategic expansion will help us build a more diversified and future-ready business. Our focus remains on creating scalable growth opportunities and delivering long-term value for our stakeholders," Chintan further added.

AVI Polymers rebounds 128% from April lows

After staging a strong recovery and recouping all of its earlier losses, the shares recovered from the sharp volatility witnessed in early April, when the stock had crashed to ₹10.61 apiece. From the month’s low, the stock has rebounded 64% to Monday’s close of ₹24.25 apiece.

The stock reached a new all-time high of ₹29.41 per share in March. Prior to that, in February, it had surged 176%, marking its biggest monthly gain since November 2025, when it had advanced 148%.

For the March quarter (Q4FY26), the company reported revenue of ₹150.28 crore, marking a 13.6% quarter-on-quarter jump from ₹132.32 crore, while net profit rose to ₹10.24 crore from ₹7.01 crore in Q3FY26, indicating growth of 46.1%.

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