Small-cap stock below ₹50 declares allotment of stocks against warrants. Details here
Small-cap stock below ₹50: Hazoor Multi Projects shares hogged the limelight in trade on Friday, a day after the company’s board approved the allotment of shares upon the conversion of 32,750 warrants.
The small-cap company said that its fund-raising committee at its meeting on June 5 considered and approved the allotment of 3,27,500 shares of face value of ₹1 at an issue price of ₹30 each.
The number of shares and the capital structure were adjusted following the stock split — from 1 equity share of ₹10 each to 10 equity shares of Re 1 each.
These shares will be issued by Hazoor Multi Projects to Venkatraman Subramanian upon the conversion of 32,750 warrants issued at an issue price of ₹300 upon receiving the remaining payment of ₹73,68,750 (75% of the issue price per warrant at ₹225 each).
Hazoor Multi Projects also notified that 88,52,450 total warrants are outstanding for conversion, and these warrant holders are entitled to get their warrants converted into an equal number of equity shares of the company by paying the remaining 75% i.e., ₹225/- per warrant, within 18 months from the date of warrant allotment.
Hazoor Multi Projects share price trend
Following a sharp 15% rally in a month, the small-cap stock below ₹50 traded with a cut today, even as the Indian stock market rejoiced at the Reserve Bank of India’s bigger-than-expected rate cut of 50 bps.
The small-cap stock, with a market capitalisation of just over ₹900 crore, has been in a base-building mode since the last two weeks. It has shed 9% during this period. In trade today, Hazoor Multi Projects’ share price dipped 4% to the day’s low of ₹41.50.
The fall also comes following its Q4 results, posted on May 30, wherein the small-cap company reported a decline in profit to ₹6.23 crore, down 40% year-on-year. Meanwhile, its revenue from operations surged 69% in Q4 to ₹227.35 crore from ₹134.56 crore in the year-ago period.
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