1:1 Bonus Likely: Hong Kong Firm Eyes This Multibagger Penny Stock at Rs 22, a 153% Premium to Market Price

Indian equity benchmark indices, the Nifty and the Sensex, scaled fresh 52-week highs on Thursday. However, the buoyancy in frontline indices did not fully spill over to the broader universe. While the Mid-Cap space ended in green, the Nifty Small-Cap index closed in the red, reflecting selective participation. Amid this mixed market breadth, one stock from the broader markets stood out with a sharp rally of nearly 9 per cent: Pro Fin Capital Services Limited.

Pro Fin Capital Services Limited, incorporated in July 1991, is a Mumbai-based non-Banking financial company (NBFC) offering a wide bouquet of financial services. Its operations span capital-market trading across equities, F&O, currencies, and commodities, depository services for seamless securities management, and short-tenure lending aimed at under-banked individuals and small businesses. In essence, the company straddles both sides of the financial ecosystem, providing market-linked investment avenues as well as credit-access solutions.

The stock was in focus after the company announced that its Board of Directors will meet on Wednesday, November 26, 2025, to deliberate on two major proposals:

1. To further discuss issuance of bonus shares, and
2. Matters arising from the letter of intent (LoI) received from Hong Kong-based Excellence Creative Limited.

On November 13, Pro Fin Capital disclosed that it had received a non-binding LoI expressing interest in acquiring up to 25 per cent of its equity share capital at a proposed price of Rs 22 per share. Against Thursday’s closing price of Rs 8.71, the proposed price implies a significant premium of 153 per cent. The board is also expected to revisit the bonus issue during its November 26 meeting. Notably, the company had already approved a 1:1 bonus issue in its earlier board meeting on October 10, 2025, entitling shareholders to one additional share for every existing fully paid-up equity share held.

The company emphasised that the LoI is merely exploratory and does not constitute a binding obligation for either party. Any progress will depend on board approval, due diligence, negotiations of definitive agreements, and compliance with regulatory frameworks under SEBI, BSE, RBI, FEMA, and the Companies Act, 2013. The company has assured that all material developments will be promptly communicated to the stock exchanges.

According to Quarterly Results, Pro Fin Capital delivered a strong financial performance in the September quarter. Net profit surged to Rs 13.37 crore in Q2FY26, compared with Rs 2.46 crore in the same period last year, marking a staggering 443 per cent year-on-year growth. Total income jumped to Rs 44.62 crore, up from Rs 6.97 crore in Q2FY25, reflecting a 540 per cent rise.

The stock, categorised as a penny stock, has already rewarded investors handsomely. It has generated multibagger returns of 102.09 per cent in the last six months, and over the past one year, the stock is up by an impressive 184.64 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.