Multibagger penny stock under Rs 5 hit lower circuit after Board to raise Rs 32,40,00,000 via rights issue

DSIJ Intelligence-1 / 10 Oct 2025/ Categories: Multibaggers, Penny Stocks, Trending

Multibagger penny stock under Rs 5 hit lower circuit after Board to raise Rs 32,40,00,000 via rights issue

The shares of the company have given multibagger returns of 1,880 per cent in 5 years.  

The Board of Directors of Padam Cotton Yarns Ltd met on Thursday, October 09, 2025, and approved a significant plan to raise funds. The core decision was the issuance and allotment of equity shares of face value Re 1 each, through a Rights Issue, to eligible existing equity shareholders. The total amount proposed to be raised is up to Rs 32,40,00,000 (Rupees Thirty Two Crore and Forty Lacs only). This fundraising is subject to receiving all necessary regulatory and statutory approvals and will comply with Section 62(1)(a) of the Companies Act, 2013, and the relevant SEBI regulations, including the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The specific terms and conditions of the Rights Issue, including the record date for determining eligible shareholders, will be determined by the Board or a duly constituted committee at a later date and subsequently notified to the public. This type of issuance, a Rights Issue, gives the company's existing shareholders the right to purchase new shares in proportion to their current holdings, ensuring their ownership is not diluted. This strategic move aims to bolster the company's financial position by injecting up to Rs. 32.40 Crores through the allotment of new equity shares.

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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 Friday, shares of Padam Cotton Yarns Ltd hit a 5 per cent Lower Circuit to Rs 4.55 per share from its previous closing of Rs 4.78 per share. The company has a market cap of Rs 59 crore and the stock is up by 18.2 per cent from its 52-week low of Rs 3.85 per share. The shares of the company have given multibagger returns of 1,880 per cent in 5 years.  

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