Advik Capital shares hit upper circuit ahead of board meeting on rights issue

Shares of Advik Capital hit the upper circuit during the trading session on Thursday ahead of its board meeting to be held on Saturday, September 2 the company's registered office to consider various matters relating to the rights issue. The company informed about the same through an exchange filing.

"The company board will meet to decide the various matters relating to the rights issue including terms and conditions such as the determination of the rights issue price and related payment mechanism, rights issue size, rights entitlement ratio and other matters incidental or connected therewith," it said.

The company board approved the rights issue amounting to Rs 50 crore in a single tranche in April this year. Shareholders of the company approved the same in May 2023. The approval from the exchange (BSE) was received earlier this month.

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Following the announcement, shares of Advik Capital were locked in the upper circuit limit of 5 per cent to Rs 2.45 on Thursday. The stock had settled at Rs 2.34 apiece during the previous trading session on Wednesday. The scrip has gained 25 per cent from its 52-week lows hit two-week ago.

The company reported net sales at Rs 152.70 crore in June 2023 quarter, up 39 per cent on a year-on-year (YoY) basis from Rs. 109.51 crore in June 2022 quarter. The net profit stood at Rs 0.64 crore in the Q1FY24, down 33 per cent YoY, while EBITDA came in at Rs 2.66 crore, up 79 per cent on yearly basis.

New Delhi-based Advik Capital a RBI-registered non-banking finance company (NBFC), which is into business of investing funds, assisting the financial accommodation by way of loans/advances to industrial concerns and undertaking the business of leasing and to finance lease operations of all kinds, purchasing, selling, hiring or letting on hire or all kinds of plant and machinery.

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