Shares of this multibagger metal stock under Rs 100 jumped up to 6 percent in Monday’s trading session after its Board approved a preferential issue of 97.98 lakh equity shares of the company. In the last six months, the company’s stock gained nearly 50 percent for its holders.
With a market capitalization of Rs 921.76 crores, the stocks of Arfin India Limited opened their trading hour on Monday at Rs 60.15 and currently trade at Rs 58. The company’s scrip witnessed an intra-day high price of Rs 62.70 indicating a gain of around 6.30 percent compared to the previous close of Rs 58.93 apiece.
Such bullish share price movements were observed after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that its Board of Directors, in their meeting held on 18th March 2024, approved the preferential issue.
The above issue will be executed by way of a share subscription and shareholder’s agreement between JFE Shoji India Private Limited and the company’s Promoters. The Promoter party includes Mr. Mahendra R. Shah, Mrs. Pushpaben Mahendrakumar Shah, Mr. Jatin M. Shah, and Mrs. Rani Jatin Shah.
Under the agreement, the Company will issue 97.98 lakh equity shares to JFE Shoji India Private Limited at an issue price of Rs 53.58 per share by way of a preferential allotment representing 5.81 percent of the fully diluted paid-up capital of the Company.
During the recent financial quarters, the company’s prime business indicators, viz, its operating revenues as well as after-tax profits, showed movements in opposing directions.
The former, on one end, dipped from Rs 134.22 crores during Q2FY24 to Rs 115.44 crores during Q3FY24, and the latter, on the other end, rose marginally from Rs 1.74 crores to Rs 1.99 crores.
In addition to the above, the company’s ratio analysis highlights the return ratios reported at decent numbers during FY23 with the return on equity (RoE) reported at 11.71 percent and the return on capital employed (RoCE) at 20.20 percent.
Arfin India Limited is an India-based company engaged in the business of manufacturing and selling non-ferrous metals products. The company’s product portfolio includes Aluminum Deox, Aluminum Wire Rods, Alloy Products, Automobile Parts, and many more.
Written by Amit Madnani
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