The shares of visa processing service providers hit the upper circuit after the company’s board of directors announced the right issue.
On Tuesday’s early trade, Du Digital Global Ltd shares hit the upper circuit of Rs 51.95 apiece, up around 4.95 percent a share on the National Stock Exchange, and the company has a market capitalization of Rs 301 crores.
According to the NSE filing, The Company’s Board of Directors approved the issuance of 1,16,22,080 equity shares with a face value of Rs 2 each at a Right Issue Price of Rs 26.50 per equity share. The company has a Rights Issue Size of Rs 30,79,85,120 with a Rights Entitlement Ratio of 1 Rights Equity Share for every 5 Equity Shares held by qualified shareholders as of the Record Date.
The company’s revenue from operations increased by 290 percent year on year to Rs 37.28 crore in FY 22-23, up from Rs 9.4 crore in FY 21-22. During the same period, the company’s net profit increased by 400 percent to Rs 0.66 crore, up from Rs 0.13 crore the previous year.
The company reported its profitability ratios at the return on equity at 2.62 percent and return on capital employed at 6.11 percent.
As per the latest shareholding pattern, the promoters hold 65.93 percent of the company, and Foreign institutional investors hold 16.09 percent.
DuDigital Global Limited provides visa processing services. The Company specialises in administrative and non-judgmental tasks cognate to visa, passport, identity management, and other citizen services.
Since penny stocks are illiquid, even a small amount of orders can lead to the upper circuit. Individual investors should conduct extensive research before investing in high-return penny stocks since they lack consistency in performance and represent a high risk to retail investors.
Written by Omkar Chitnis
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