Ace investor Rakesh Jhunjhunwala is all set to invest nearly Rs 31 crore in the mining and minerals company Raghav Productivity Enhancers Limited.
Raghav Productivity Enhancers Limited said it would issue 6,00,000 Unsecured Compulsory Convertible Debentures (CCD’s) for Rs 30.9 crore by way of a preferential allotment on a private placement basis to Rakesh Jhunjhunwala.
The stock has been gaining for the last 12 days and risen 51.31% during the same period. Share of Raghav Productivity Enhancers Limited has delivered 578 per cent returns to its shareholders in the last 12 months. The share stood at Rs 111 on August 3, 2020. It has zoomed to Rs 752.70 today, translating into gains of 578 per cent during the period.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 33.9 lakh today.
The stock has gained 212 per cent since the beginning of this year. It closed 5 per cent higher at Rs 752.70 against the previous close of Rs 716.90 on BSE.
Market capitalisation of the firm stood at Rs 818.6 crore. The share of Raghav Productivity Enhancers Limited stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
"It is proposed to issue and allot 6,00,000 CCD's having face value of Rs 515 each, the face value of which will be convertible into ordinary equity shares of the company (“Conversion Shares”) at a conversion price of Rs 515 per equity share with the aggregate amount i.e. the face value of Rs 10 per equity share and premium of Rs 505 per equity share, which is in compliance with the ICDR Regulations," the company said.
"The “Relevant Date” for the purpose of calculating the price of the Conversion Shares shall be 26th July 2021, being the date 30 (thirty) days prior to the date on which the meeting of Shareholders is to be held to consider the proposed issuance of CCDs," it added.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.34 times. Also, along with generating a 578% return in the last 1 year, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.
The technical trend has improved from Mildly Bullish on July 5, 2021, and the stock is technically in a Bullish range now and has generated 68 per cent return since then. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST, and DOW. However, it noted that the valuation is very expensive right now.
The company reported a standalone profit of Rs 4.28 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 0.58 crore. Revenue from operations zoomed 127 per cent to Rs 20.61 crore in the June-ended quarter against Rs 9.07 crore a year ago. Earnings per share has increased to Rs 3.94 in June 2021 from Rs 0.58 in June 2020.
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