Shares of this penny stock hit the 5 percent upper circuit after Foreign Portfolio Investor (FPI) buys a fresh stake in the company via Bulk Deal.
With a market capitalization of Rs 200 crores, the stocks of Visa Steel Limited started their trading session on Friday at Rs 16.45 and currently is locked in the 5 percent upper circuit at a price of Rs 17.08. In the last five trading sessions, the scrip has gained more than 25 percent moving from Rs 13.65 to the current price level.
Such sharp movements in the prices were observed after a Bulk Deal that took place with regard to the company’s shares.
According to the Bulk Deal data available with the National Stock Exchange (NSE) as of 3rd August 2023, Eriska Investment Fund Limited, a Mauritius-based Foreign Portfolio Investor (FPI) sold 56 Lakh shares of the company at an average price of Rs 16.45 per share. On the other end, Ayushmat Limited, another FPI based in Mauritius, bought 46.59 Lakh shares at the same price.
As per the June 2023 quarter, Eriska Investment Fund holds around 99.12 Lakh equity shares of the company equating to a 8.56 percent stake.
The company, in the last two quarters, has shown some abnormal changes as far as the operating revenues and after-tax profits are concerned. The operating revenues went down from Rs 160 crores during Q4FY22-23 to Rs 107 crores during Q1FY23-24, and, after-tax profits worsened from profits of Rs 1,727 crores to a loss of Rs 20 crores during the same time horizon.
Generating a majority of revenues from Indian operations, Visa Steel Limited is a mineral company based in India that is engaged in the business of manufacturing steel as well as iron products, some of which include sponge iron, pig iron, etc. The company, broadly, has two business segments including “Ferro Alloys” and “Special Steel”.
Investments in Penny stocks are subject to risks as they contain huge volatility in stock price movements and lower market capitalization. Thus, it is encouraged to consult your investment advisor before taking an entry into such stocks.
Written by Amit Madnani
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