Low PE penny stock hit upper circuit on September 10: The company is set to raise Rs 650 crore via various modes!

On Wednesday, shares of Osia Hyper Retail Limited hit a 5 per cent upper circuit to Rs 25.81 per share from its previous closing of Rs 24.59 per share. The stock has been hitting back-to-back upper circuits in recent trading sessions.

Osia Hyper Retail Ltd., founded in 2014, is a retail chain with operations primarily in Gujarat and Jhansi. The company operates a balanced business model, with an equal split between its food and non-food divisions, offering a vast selection of over 300,000 products. Its retail network includes 37 stores: 31 large-format Osia Hypermarts that provide a wide range of goods from groceries to household items, and 5 smaller Mini Osia stores focused on daily grocery needs. Osia Hyper Retail also has one warehouse to support its stores. The company emphasises value and quality, aiming to provide a modern shopping experience while leveraging its experienced team and strong customer relationships to drive future growth.

The Board of Directors of a company approved several key financial and corporate actions. These decisions, made in accordance with SEBI regulations, include a significant increase in the company's Authorised Share Capital to Rs 500 crore. Additionally, the board approved multiple capital-raising initiatives to be undertaken subject to shareholder approval. These include a Qualified Institutions Placement (QIP) of equity shares to raise up to Rs 200 crore, a Preferential Allotment of equity shares to raise up to Rs 100 crore, and a Preferential Allotment of Convertible Warrants to raise up to Rs 350 crore. The total capital-raising plan amounts to Rs 650 crore.

These proposals will be presented to the company's members at an Extraordinary General Meeting (EGM) scheduled for September 22, 2025. The notice for the EGM will be dispatched to shareholders in due course. As part of the preferential issue, the company will allot 4,54,54,545 equity shares to Elitecon International Limited, a non-promoter investor. Following this allotment, Elitecon International Limited's shareholding in the company will be approximately 11.91 per cent.

According to Quarterly Results, the company reported net sales of Rs 326.48 crore in Q1FY26. The company reported a net profit of Rs 8.04 crore in Q1FY26 compared to a net profit of Rs 0.53 crore in Q4FY25, an increase of 1,417 per cent QoQ. The shares of the company have a PE of 20x whereas the industry PE is 78x.

In June 2025, the promoters bought 65,00,000 shares & FIIs bought 4,24,488 shares, increasing their stake to 47.53 per cent and 0.52 per cent, respectively, compared to March 2025. The company's shares have a 52-week high of Rs 50.47 per share and a 52-week low of Rs 11.31 per share. The stock has given multibagger returns of over 100 per cent from its 52-week low of Rs 11.31 per share and the company has a market cap of Rs 425 crore.

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