The shares of the leading manufacturer of power transmission and distribution structures gained 8.2 percent to Rs 258 per share on Monday after the company board approved the right issue.
At 1:20 p.m., Skipper Ltd shares were quoted at Rs 258 per share, up 7 percent on the stock exchange. The company belongs to the small-cap category with a market capitalization of Rs 2,651 crore.
According to the exchange filing, The Company’s Board of Directors approved the issuance of 1,02,67,021 equity shares aggregating to Rs 199.80 crore for an issue price of Rs 194 per equity share.
The company board has approved a Right Entitlement Ratio of 1 Rights Equity Share for every 10 Equity Shares held by qualified shareholders as of the Record Date.
Skipper share gained 60 percent in the last six months and delivered a multibagger return of 113 percent in a year. A shareholder investment of Rs 1 lakh in the company, would be worth Rs 2.13 lakh in a year.
The company’s revenues have increased by 67 percent year on year from Rs 462 crore in Q2FY23 to Rs 772 crore in Q2FY24, while net profit has slightly increased by 280 percent from Rs 5 crore to Rs 19 crore.
During the September quarter, the business received new orders worth Rs 1,529 crore and achieved its highest-ever first-half inflow of Rs 2,744 crores. Furthermore, domestic sales accounted for 83% of the Rs 6,074 order book, while overseas orders accounted for 17%.
As of H1 FY24, the Engineering segment revenue contributed 76 percent, while polymer contributed 18 percent and the infrastructure segment contributed 6 percent. The company exports its products to more than 55 countries.
Skipper Ltd is engaged in manufacturing and selling Transmission and distribution Structures and Pipes and fittings. It also undertakes EPC projects in the infrastructure segment.
Skipper is the market leader in the manufacture of T&D structures and distribution poles. It is positioned among the 10 largest global T&D structure manufacturers.
Written by Omkar Chitnis
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