Business News/ Markets / Stock Markets/  This 100% publicly hold penny stock announces rights issue in a 3:2 ratio

A small-cap company with a market valuation of Rs. 8.10 Cr., Sharanam Infraproject and Trading Ltd. operates in the commercial services industry. Currently, the company's only stream of business is the retail supply of building supplies. The company's board of directors has considered and approved a 3:2 rights issue.

The company has said in a stock exchange filing that “With reference to the above captioned subject, we hereby want to inform you that the Board of Directors in meeting held today i.e. Tuesday, 04th October, 2022 at 1:00 P.M. and concluded at 05:15 P.M. inter alia has considered and approved: 1. Issuance of approximately 7,50,01,500 (Seven Crore Fifty Lakhs One Thousand Five Hundred) Equity Shares of the company having face value of Rs. 1/- each by way of right issue in the ratio of 3 equity shares for every 2 fully paid-up equity shares held by existing equity shareholders of the company as on record date (yet to be notified), in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, the Companies Act, 2013 and other applicable laws, at such terms and conditions as may be decided by the Board or a duly constituted committee of the Board, subject to receipt of necessary approvals, if and as may be required."

Sharanam Infraproject and Trading Ltd's shares declined by 1.20% from the previous close of 1.66 on Friday and settled at 1.64 per share. The volume of shares traded on Friday was 886,560 as opposed to the 20-Day average volume of 907,349 shares. The stock has gained by 36.67% over the past five years, while the share price has gone up by 64.0% during the past three years. The stock has appreciated 5.81% over the past year, but it has dropped 5.20% YTD. The stock has appreciated 74.47% over the past month, and 7.89% over the past five trading sessions. 

This penny stock had touched a 52-week-high of 2.18 on (10/01/2022) and a 52-week-low of 0.54 on (15/11/2021), indicating that at the current market price the stock is trading 24.77% below the high and 203.70% above the low. For the quarter that ended June 2022, the company recorded a public shareholding of 100% which is constant since December 2021.

Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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Updated: 08 Oct 2022, 11:05 PM IST
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