Shares of this microcap company jumped 5 percent in Tuesday’s trading after signing an MoU with Ammararsh Infra Developers to acquire land in Ayodhya. The shares have delivered a multibagger return of 522 percent to its shareholders in one year.
With a market capitalization of Rs. 495 crores, the shares of Exhicon Events Media Solutions Ltd started Tuesday’s trading session positively at Rs. 405 compared to its previous close of Rs. 403. During the trading session, the shares hit a high of Rs. 420, gaining around 5 percent and closed the day at Rs. 418 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that signed the Memorandum of Understanding (MoU) with Ammararsh Infra Developers Private Limited to appoint them as the official channel partner for the acquisition of Land in Ayodhya for development of an experience centre, a multipurpose event venue, and to manage the business operations of the company in Ayodhya.
According to the MoU, the company is to acquire 25 Acres of land in Ayodhya on the PPP model for the development of an exclusive experience centre, catering to diverse interests and promoting cultural immersion.
Furthermore, Exhicon to plans develop an Experience Centre (Multipurpose Event Venue), Convention Hotel and Banquets, Delegate Management Business, and Media and Marketing Business in Ayodhya.
Coming onto the company’s financial statements, the revenue zoomed by 28 percent from Rs. 46 crores during FY21-22 to Rs. 59 crores in FY22-23. In addition, the net profits magnified by 125 percent from Rs. 4 crores to Rs. 9 crores during the same period.
According to the annual report, as part of its growth and expansion strategy, the company intend to increase the geographical reach of the existing exhibitions. This will include increasing the number of cities for established exhibitions to increase the exhibitor base and will also include cross-selling of established exhibitions to the same exhibitors for a different location.
Furthermore, the company intend to enter into forward integration by increasing its in-house capabilities of stall designing and fabrication and backward integration- by owning a semi-permanent exhibition centre. This forward-backwards integration will benefit in reducing the dependence on third-party service providers, improving the quality of its service and thereby improving exhibitor and visitor experience and satisfaction.
Headquartered in Mumbai, Exhicon Events Media Solutions was incorporated in 2010. The company offers complete event management solutions, including planning and execution of trade shows, corporate events, wedding events, and social and community events.
Written By Vaibhav Patil
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