Penny stock with 2,300% multibagger returns: Company’s Board approved QIP up to Rs 2,500 crore; 10.5 times its current market cap!

The Board of Directors of Excel Realty N Infra Limited, in a meeting held on October 6, 2025, has given its key approval to a significant financial manoeuvre: increasing the issuance of Equity Shares through a Qualified Institutions Placement (QIP). This capital-raising exercise is planned for an aggregate amount of up to Rs 2,500 crore (Rupees Two Thousand and Five Hundred Crores only). The issuance, which is subject to approval from the company's members and other regulatory authorities, is being undertaken in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and is intended to provide the company with a substantial influx of growth capital.

To facilitate this massive fundraising initiative, the Board also approved a corresponding increase in the Authorised Capital of the Company. The proposed increase is a dramatic boost, taking the authorised capital from the current Rs 500 crore up to Rs 2,500 crore. This change, which must be ratified by the shareholders, involves altering the Capital Clause of the Memorandum of Association. The expansion of the authorised capital provides the necessary structural foundation and capacity to issue the new shares under the QIP and future capital-raising activities.

This latest capital restructuring follows a recent Extra-Ordinary General Meeting (EGM) held on September 11, 2025, where shareholders had already approved a previous, smaller increase in the Authorised Share Capital from Rs 150 crore to Rs 500 crore. Furthermore, the EGM passed a special resolution to significantly alter the Main Object Clause of the Memorandum of Association, expanding the company's business focus into new sectors. These new business areas, which received subsequent approval from the Ministry of Corporate Affairs (MCA) on October 1, 2025, primarily include the vast Fast-Moving Consumer Goods (FMCG) sector, covering food and beverages, alongside expansion into Power & Energy engineering and distribution, signalling the company's aggressive strategy for diversification and growth.

About the Company

Established in 2003, Excel Realty N Infra Limited, formerly known as Excel Infoways Limited, operates across multiple sectors, including infrastructure development, IT-enabled BPO services, and general trading. The company’s IT/BPO division specialises in providing customer care and workflow management services. In the infrastructure space, Excel Realty focuses on residential and annuity businesses, having completed various projects such as agricultural land development with Silicon Infracon, stormwater drainage for Arshiya International Ltd., and an intake Construction at the Modak Sagar Tunnel. The company has also been involved in a mining project for EMTA Coal Limited, showcasing its diverse portfolio and collaborative approach.

According to Quarterly Results, the net sales increased by 1,082 per cent to Rs 5.79 crore in Q1FY26 compared to Q1FY25. The company reported net profit of Rs 0.02 crore in Q1FY26. In FY25, the company reported net sales of Rs 18.93 crore and net profit of Rs 0.69 crore.

In June 2025, FIIs took a fresh entry and bought 10,00,000 shares or 0.07 per cent. The company has a market cap of Rs 238 crore and its stock is trading at 1.15 times its book value. The stock gave multibagger returns of 160 per cent from its 52-week low of Rs 0.65 per share and a whopping 2,300 per cent in 5 years.

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