This Penny stock rose 5% to hit its upper circuit on Tuesday within the first hour of markets opening after announcing that it has received an open offer from multiple acquirers. The company has a market cap of Rs. 127 crore and is 22% away from its 52 week high, locked in at Rs. 38.11 versus Rs. 36.30 at closing on Friday.
The stock saw volumes that are 20x the monthly average, trading 2% and 2.3% respectively above its 20 day and 200 day moving averages.
In a filing dated 29th September 2023, Coromandel Engineering Company Ltd (“CECL”) announced that it has received an open offer for acquisition of up to 84,68,244 shares, representing 25.48% of the fully diluted Voting Share Capital at an offer price of Rs. 13.50 from Accord Distillers & Brewers Private Limited (“Acquirer 1”), Teyro Labs Private Limited (“Acquirer 2”), Jam Hotels and Resorts Private Limited (“Acquirer 3”) and Mr. Sundeep Anand Jegath Rakshagan (“Acquirer 4”).
Fortress Capital Management Services Private Limited, the Manager to the Offer for and on behalf of the Acquirers, to the Public Shareholders of the Target Company pursuant to and in compliance with the provisions applicable Regulations.
Coromandel Engineering engages in the construction and property development businesses in India. Revenue was Rs. 133 crore in FY22 and Rs. 127 crore in FY23. During the same periods, the company’s Net Loss were Rs. 8 crore and Rs. 4.5 crore respectively. Margins were -6% for FY22 and -4% in FY23, expansion of 2000 bps.
Disclaimer: Since penny stocks are generally illiquid, even a small increase in volume of buy orders can lead to the stock hitting its upper circuit. Even though the stock prices come under an average buying range for retail investors and provide huge upsides, penny stocks are prone to huge risks to retail investors. As such, you should consult your financial advisor before taking an entry into such stocks.
Written by Sandeep R
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