Multibagger penny stock under Rs 10 hit lower circuit after Board to consider preferential and/or rights issue to raise funds for working capital

The Board of Directors of Padam Cotton Yarns Ltd convened a meeting to evaluate various fundraising options, including a preferential or rights issue of equity shares. After considering the need to strengthen the company's financial position to meet its working capital and long-term funding needs, the Board determined that further detailed discussions were necessary. Consequently, a separate board meeting has been scheduled for Wednesday, September 24, 2025, to formally consider and approve the issuance of shares via a preferential and/or rights issue, pending all required regulatory approvals and compliance.

Padam Cotton Yarns Ltd., established in 1994, is a company specialising in the production of cotton yarn and consulting services. Their primary product is Tow Dyed, Bulked Acrylic Yarn, manufactured using advanced Tow-based technology sourced from Japan Exlan. Beyond yarn production, the company offers valuable consultation services to the textile industry and engages in wholesale trading of agricultural pumping sets and implements.

On Tuesday, shares of Padam Cotton Yarns Ltd hit a 5 per cent lower circuit to Rs 5.88 per share from its previous closing of Rs 6.18 per share. In the recent trading sessions, the stock has been hitting back-to-back lower circuits. The company has a market cap of Rs 76 crore and the stock gave multibagger returns of 114.6 per cent from its 52-week low of Rs 2.74 per share.

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