This multibagger stock rallied 46% in 3 sessions; here's why

Shares of Pritika Auto Industries extended its gains on Tuesday as the stock rose another 15 per cent during the session to hit news highs. The lesser-known stock has been hogging limelight at Dalal Street, rising more than 45 per cent in the last three trading sessions.

The company recently announced the allotment of equity shares to warrant holders belonging to the non-promoter category on a preferential basis. The company informed about the same through an exchange filing on Friday and the stock has been rallying higher since then.

The company board considered and approved the allotment of equity shares on conversion of 28,50,000 warrants into 28,50,000 equity shares of face value of Rs 2 each, to 'non-promoters and public category investors on a preferential basis, it said in the exchange filing.

The company has received the balance 75 per cent amount aggregating to Rs. 4.06 at the rate of Rs 14.25 per warrant from the allottees pursuant to the exercise of their rights of conversion into equity shares, it added. The remaining 25 per cent was paid by the allottees during the subscription of the warrants.

Following the announcement, shares of Pritika Auto Industries have gained about 15 per cent to Rs 31.70, hitting its new highs. The scrip had settled at Rs 27.64 apiece in the previous trading session. The stock is up 46 per cent in the last three trading sessions from Rs 21.7 on Friday, while it has surged over 140 per cent from its 52-week low at Rs 13.1, hit in March 2023.

Zenith Multi-Trading DMCC, Healthy Biosciences, Akash Deep Tyago and Mahnedra Otwani have converted their warrants into equity shares. However, select investors have kept some of the warrants for conversion, which are likely to be converted in the equity shares later on.

Pritika Auto Industries, Incorporated in 1980, specializes in the production of tractors and automotive components. It is engaged in the manufacturing of tractor and automobile components. It is among leading manufacturers of machined castings in India.

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