Multibagger stock under Rs 100 hit a 52-week high after company announced a Rs 279.97 crore rights issue to fuel growth and main board migration

On Tuesday, shares of Cool Caps Industries Ltd jumped 16 per cent to an intraday high of Rs 99.50 per share from its previous closing of Rs 85.80 per share. The stock comes under the NSE SME Emerge Index. The stock also made a 52-week high of Rs 99.50 per share and its 52-week low is Rs 33.47 per share.

Cool Caps Industries Limited, a leading Kolkata-based plastic cap manufacturer, is launching a rights issue to raise Rs 279.97 crore. The company, which has seen a five-fold increase in sales and a three-fold increase in profit over the last three years, is offering existing shareholders an opportunity to buy new shares at a discounted price of Rs 70 per share. The issue will open for subscription on September 30, 2025, and close on October 24, 2025. This capital infusion is expected to help the company achieve stability and business growth.

The rights issue will see the company issue 3,99,95,000 fully paid-up equity shares with a face value of Rs 2 each. The total amount to be raised is Rs 279.97 crore. Shareholders who hold equity shares as of the record date, September 23, 2025, are eligible to participate. They will be entitled to one right equity share for every one fully paid-up equity share they own.

To apply for the rights shares, eligible shareholders must pay Rs 17.5 per share upfront at the time of application. The remaining amount of Rs 52.5 per share will be payable at a later date, which will be determined by the board of directors. The proceeds from this rights issue will be used to strengthen the company’s financial position and for general corporate purposes, which the board believes will create significant value for shareholders in the long run.

The last date for on-market renunciation of the rights entitlement (REs) is October 16, 2025. This means that shareholders who are eligible but do not wish to subscribe to the rights issue can sell their entitlements in the market before this date. Following the completion of this rights issue, Cool Caps Industries will be eligible to migrate to the main board of the stock exchange, a move that is likely to enhance its visibility and access to a wider pool of investors.

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About the Company

Established in 2015, Cool Caps Industries Ltd. (CCIL), a subsidiary of Purv Group, specialises in manufacturing a diverse range of plastic caps and closures for the beverage packaging industry. Their extensive product portfolio includes various types of caps and closures (such as Alaska, Seal, CSD 13, BT, and Juice caps), different sizes of PET preform (500 ml, 1 Lt., 5 Lt., 10 Lt.), plastic handles for 2 Lt. and 5 Lt. bottles, and multi-layer flexible shrink films for shrink wraps, along with rPET flakes.

According to half-yearly results, the net sales increased by 98 per cent to Rs 142.29 crore and net profit increased by 4,814 per cent to Rs 6.88 crore in H2FY25 compared to H2FY24. In its annual results, the net sales increased by 56 per cent to Rs 238.49 crore and net profit increased by 205 per cent to Rs 11.97 crore in FY25 compared to FY24.

The company has a market cap of over Rs 1,200 crore with a PE of 110x, an ROE of 26 per cent and an ROCE of 16 per cent. The stock has given multibagger returns of 197 per cent from its 52-week low of Rs 33.47 per share.

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