The Indian stock market is buzzing with activity in penny stocks, and one such name that has caught investor attention is Sharanam Infraproject and Trading Limited. This company witnessed a significant surge in its share price recently, showcasing its potential in the penny stock segment.
Stock Performance: A Rollercoaster Ride
Last Friday, Sharanam Infraproject’s stock jumped nearly 10%, closing at ₹1.06, up from ₹0.97 the previous day. The stock had reached a 52-week high of ₹1.36 in January 2024 and hit a low of ₹0.47 in May 2024. This volatility has drawn considerable attention from investors looking to capitalize on its movements.
Rights Issue Announcement Sparks Interest
A major development boosting market activity around the stock is the company’s announcement of a rights issue. Scheduled for December 31, 2024, as the record date, the company plans to issue 48 crore equity shares at a price of ₹1 per share. The total size of this rights issue will be ₹48 crore, offered in a 4:1 ratio—existing shareholders will receive 4 new shares for every share they own.
This initiative is aimed at raising funds and indicates the company’s proactive approach to meet its financial and operational goals.
What is a Rights Issue?
A rights issue is a financial tool companies use to raise capital by offering additional shares to existing shareholders at a discounted price. Companies often employ this strategy to fund new projects, repay debt, or expand their business. This allows shareholders to increase their stakes at a lower cost.
Ownership Pattern: 100% Public Holding
One unique aspect of Sharanam Infraproject is its shareholding pattern. The company has zero promoter holdings, meaning the entire ownership rests with public shareholders. This structure offers complete transparency in its operations and emphasizes its dependence on retail and institutional investors for growth.
A Glimpse into Sharanam Infraproject’s Business
Established in 1992, Sharanam Infraproject specializes in the supply and distribution of various steel products and construction materials. The company caters to sectors such as:
- Seamless and welded steel pipes
- Oil and gas industry components
- Real estate projects
- Infrastructure development
Its portfolio includes seamless pipes, electric resistance welding (ERW) products, high-frequency induction welding items, and longitudinal submerged arc welding solutions. This diversified range underscores the company’s pivotal role in India’s industrial and infrastructure sectors.
Sharanam Infraproject’s strategic move to announce a rights issue and its niche business offerings make it a stock to watch in the coming days. Investors eyeing the penny stock market may find it intriguing given the company’s recent performance and future prospects.
