Penny stock below Rs 5: Board allotted 1,68,00,000 shares to promoters & non-promoters on conversion of warrants!

DSIJ Intelligence-1 / 06 Jul 2025/ Categories: Penny Stocks, Trending

Penny stock below Rs 5: Board allotted 1,68,00,000 shares to promoters & non-promoters on conversion of warrants!

The stock is up over 50 per cent from its 52-week low of Rs 2.72 per share.

On Friday, shares of Shah Metacorp Ltd gained 2.53 per cent to Rs 4.06 per share from its previous closing of Rs 3.96 per share. The stock’s 52-week high is Rs 7.40 and its 52-week low is Rs 2.72.

Shah Metacorp Ltd, established in 1999, is a manufacturer, exporter, and supplier specialising in stainless steel and mild steel long products. Their stainless-steel offerings include equal angle bars, bright bars, flat bars, flats, ingots, and angles, primarily used in architectural applications, bridges, automotive components, and more. Additionally, they produce mild steel angle bars crucial for transmission line towers, construction, telecom towers, windmills, railways and other infrastructure projects.

Shah Metacorp Ltd's Committee of Directors approved the preferential allotment of a total of 1,68,00,000 equity shares, each with a face value of Re 1, to promoters & non-promoter entities at an issue price of Rs 4.71 per share. This decision follows a special resolution passed at the Extra-ordinary General Meeting on March 5, 2025, and in-principle approvals from BSE Limited on June 24, 2025, and National Stock Exchange Limited on June 23, 2025, all in compliance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The allotment includes 1,05,00,000 shares to Karni Enterprise (68,00,000 shares) and Jayani Healthcare (37,00,000 shares), raising Rs 4,94,55,000, and an additional 63,00,000 shares to Hemlataben Patel (50,00,000 shares) and Jayani Healthcare (13,00,000 shares). These allotments are part of a larger plan to issue 6,65,00,000 equity shares on a preferential basis.

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According to Quarterly Results, the net sales of Rs 41.46 crore and net profit of Rs 3.81 crore in Q4FY25. In its annual results, the net sales increased by 81 per cent to Rs 176 crore and net profit increased by 725 per cent to Rs 33 crore in FY25 compared to FY24.

The company has a market cap of over Rs 240 crore and has delivered good profit growth of 22.1 per cent CAGR over the last 5 years. The shares of the company have an ROE of 9 per cent and an ROCE of 8 per cent. The stock is up over 50 per cent from its 52-week low of Rs 2.72 per share.

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