Multibagger penny stock under Rs 35: FPIs to subscribe convertible warrants; issue increased to Rs 449.99 crore; EGM Sept 22, 2025

Osia Hyper Retail Ltd. has announced a significant shift in its funding plans. The company's original proposal to raise funds from Elitecon International Limited (EIL) has been withdrawn. This comes after EIL communicated its decision not to subscribe to the previously agreed-upon equity shares and convertible warrants, which totalled a proposed investment of nearly Rs 220 crore.

In a new development, the investment of Rs 219.99 crore, previously earmarked for EIL, will now be undertaken by a group of foreign portfolio investors (FPIs). This new group includes Magnifica Global Opportunities VCC, Nautilus Private Capital Ltd, and Ebene Global Opportunity Fund. These FPIs will participate in a preferential issue of convertible warrants. As a result of this change, the company will withdraw its earlier application to the National Stock Exchange of India (NSE) for the listing of the equity shares intended for EIL.

The company is also increasing the total size of its fundraising initiative through the preferential issue of convertible warrants. The amount has been raised from Rs 350 crore to nearly Rs 450 crore. The new plan involves issuing up to 20.45 crore convertible warrants at an issue price of Rs 22 each. This expanded fundraising effort will be subscribed to by a total of six FPIs, which include the three mentioned above, along with Eminence Global Fund PCC, Zeal Global Opportunities Fund, and North Star Opportunities Fund VCC.

About the Company

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.

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 176.5 per cent from its 52-week low of Rs 11.31 per share and the company has a market cap of over Rs 500 crore.

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