3,78,000% multibagger returns & 52-week high alert: Company announces share subscription cum purchase agreement for acquisition of shares of Rivaara Labs

On Tuesday, shares of Authum Investment & Infrastructure Ltd surged 3.05 per cent and made a fresh new dividend-income-stock-hits-upper-circuit-52-week-high-after-board-declares-record-date-for-dividend-id001-51976">52-week high of Rs 3,130 per share from its previous closing of Rs 3,037.45 per share.

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Authum Investment & Infrastructure Limited has signed a Share Subscription cum Purchase Agreement with Rivaara Labs Private Limited and its existing shareholders. This agreement will see Authum acquire a 35.09 per cent voting stake in Rivaara Labs for a total cash consideration of Rs 36,56,83,001. The acquisition is expected to be completed by September 30, 2025, pending the fulfilment of certain conditions.

The total acquisition cost is comprised of two parts: a primary infusion of Rs 36 crores to subscribe to 3.6 crore cumulative compulsorily convertible participating preference shares (CCPS), and a purchase consideration of Rs 56.83 lakhs for 1.58 crore equity shares and 4.09 crore CCPS from existing shareholders. Rivaara Labs, incorporated in 2019, is a diagnostic services company that focuses on pathology, imaging, and molecular biology-based testing, including RT-PCR and genomic sequencing. The acquisition aligns with Authum's strategy to diversify its portfolio into sectors with growth potential.

Authum Investment & Infrastructure Limited specialises in fund-based activities, primarily focusing on investments in a variety of financial instruments. The company's business model is concentrated on investments, which made up 89% of its H1 FY25 business. Its portfolio includes investments in publicly listed and unlisted companies, private equity, real estate, and debt instruments. Additionally, Authum is involved in structured financing, managing fixed-return portfolios, and providing secured lending and equity investments to emerging companies.

The company has a market cap of over Rs 50,000 crore and has delivered good profit growth of 209 per cent CAGR over the last 5 years. The shares of the company have a PE of 13x, an ROE of 34 per cent and an ROCE of 31 per cent. The stock has given multibagger returns of 135 per cent from its 52-week low and a whopping 3,78,000 per cent in a decade.

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