Shares of this multibagger oil stock jumped up to 16 percent in Thursday’s trading session after the company announced a couple of business updates via a BSE filing. In the past month, the company’s stock soared more than 20 percent.
With a market capitalization of Rs 774.52 crores, the stocks of Selan Exploration Technology Limited started their trading session on Thursday at Rs 491 and currently trades at Rs 510. The scrip witnessed an intra-day high of Rs 553.40 indicating a jump of around 16 percent as compared to the previous close of Rs 478.60 apiece.
Such sharp movements in the company’s stock price were observed after the company Board, via a recent filing with the Bombay Stock Exchange (BSE), gave a couple of business updates.
Firstly, the company’s Board, after receiving the recommendation from the committees, approved the scheme of amalgamation between ‘Antelopus Energy Private Limited’, the Transferor company, and ‘Selan Exploration Technology Limited’, the Transferee company. The abovementioned scheme is subject to various approvals as may be required.
Moreover, the Board also approved a fundraise by way of issuance of equity shares, convertible & non-convertible debentures, and/or any other financial instruments by way of a Qualified Institutions Placement (QIP) of an aggregate amount not exceeding Rs 250 crores
During the recent financial quarters, the company has been successful in increasing its basic business parameters such as operating revenues and after-tax profits.
The former rose from Rs 28 crores during Q1FY23-24 to Rs 39 crores during Q2FY23-24, and, the latter, during the same time horizon, shifted from Rs 5 crores to Rs 9 crores.
Coming onto the profitability ratios of the company, the return on equity (RoE) moved up from 3.01 percent during FY21-22 to 8.57 percent during FY22-23, and, furthermore, the return on capital employed (RoCE), during the same timeframe, rose from 3.43 percent to 9.96 percent.
Year-to-date, the company’s stock has delivered multibagger returns of approximately 111 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock at the start of this calendar year, it would have converted to Rs 2.11 lakhs.
According to the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 30.46 percent stake, and the Foreign Institutional Investors (FIIs) hold a consistent stake of 3.78 percent over the past few financial quarters.
Incorporated in 1985, Selan Exploration Technology Limited is engaged in the business of exploration as well as production of crude oil and natural gas. Generating a majority of revenue from the sale of crude oil, the company had operations in Gujarat, Punjab, etc.
Written by Amit Madnani
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