Knowledge Monk

Board declares rights issuance in the ratio of 20:119 for LIC-backed multibagger penny stock, which is trading at Rs 3.89

Integra Essentia Ltd intends to raise up to Rs 50 crore through a rights offering. Up to 152,634,538 new equity shares with a face value of Re 1 will be issued in order to accomplish this. With a possible raise of Rs 49.93 crore, the rights issue price is fixed at Rs 3.25 per share, including a premium of Rs 2.25 per share.

On June 1, 2024, existing shareholders who own 20 equity shares will be granted the ability to purchase an extra 119 new shares. This corresponds to a 20:119 right entitlement ratio.

Subscriptions for the rights issue will be accepted from June 11, 2024, to June 25, 2024, with a potential extension by the board of the company or a designated committee. The total number of outstanding shares of the firm will rise from 91,40,66,006 to 1,06,76,90,544 in the event that the issue is fully subscribed. This indicates that the equity base of the company has the potential to increase by more than 16.8%.

The FMCG multibagger Integra Essentia Ltd. saw a 0.78% increase in share price today from its previous closing of Rs 3.86. Integra Essentia Ltd. is backed by the insurance behemoth Life Insurance Corporation (LIC), which holds 1.06 percent of the company’s shares. On the BSE, the volume of the company’s shares increased by more than 1.52 times.

Furthermore, the business received an order yesterday for the first time ever to provide 500 metric tons (MT) of rice to the esteemed Agri Division of the ITC Group. With this first order, which is estimated to be worth INR 14.25 million, Integra Essentia might become the ITC conglomerate’s supplier for the foreseeable future. According to the order, the rice has to be supplied within the following 15 days and meet certain quality standards. For background, the ITC Group is a reputable conglomerate in India that operates in a number of different industries, such as FMCG, hotels, and agribusiness. One of the most important integrated businesses in the nation is ITC’s Agri-Business Division, which is actively involved in the import and export of coffee, food grains (such as rice, wheat, pulses, barley, and maise), feed ingredients (such as soy meal), processed fruits (such as fruit purees, concentrates, IQF/frozen fruits, and organic products), and marine products (such as shrimp and prawns).

Concerning Integra Essentia Ltd.

A multifaceted business, Integra Essentia Limited (IEL) offers necessities for modern living in the following areas: food (including agricultural products), clothing (textiles and garments), infrastructure materials and services, and equipment for renewable energy. By providing these products at a fair price, they hope to benefit society and establish themselves as a major force, particularly in the Food Essentials market. IEL is also dedicated to meeting India’s infrastructure demands with goods and services. They also provide a large selection of goods to improve lifestyles, such as bulk materials, apparel, and items related to nutrition and health. IEL recently purchased a vineyard and a majority share in a beverage firm in order to fulfill its growth goal, taking advantage of the expanding markets for consumables, wine, beer, and whiskey.

Quarterly Results (Q4FY24) show that compared to Q3FY24, net sales climbed by 50.4% to Rs 93.31 crore and net profit improved by 733.8% to Rs 5.92 crore. According to its annual statistics, net profit climbed by 131.4 percent to Rs 15.28 crore in FY24 compared to FY23, while net sales increased by 50.4% to Rs 277.27 crore.

During the January 13, 2024, board meeting, the business approved the 1:1 distribution of 45,70,33,003 bonus equity shares to current shareholders. The shares were distributed to shareholders on that date. The costs associated with the Rs 90.25 lakh bonus issue and increase in authorized capital were capitalized and adjusted from other equity during the year that ended on March 31, 2024.

From its 52-week low of Rs 2.55 a share, the stock has increased by 52.5%. It has also shown multibagger returns, returning 500% in just three years and a staggering 95% in five. Investors ought to monitor this micro-cap stock closely.

Disclaimer: This is not investment advice; it is merely informational.

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