The shares of this smallcap locked a 5 percent upper circuit after the board announced a preferential issue of 2,43,24,313 equity shares to certain allottees, including prominent investors Ashish Rameshchandra Kacholia and Mukul Agrawal.
Price Movement:
With a market capitalization of Rs. 1,536 crores, the shares of Ravindra Energy Ltd started Wednesday’s trading session on a higher note at Rs. 99.04, clocking a 5 percent upper circuit compared to its previous close of Rs. 94.33 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing approved the preferential issue of 2,43,24,313 equity shares of the face value of Rs. 10 each, at a premium of Rs. 64 per equity share, aggregating to Rs. 179.99 crores.
This issuance was carried out on a preferential basis, meaning the shares would be allocated to select investors rather than being available to the general public.
According to the allottees list published by the company, Mr. Ashish Rameshchandra Kacholia has been offered 15,54,054 shares or a 0.87 per cent stake. His investment in this allocation will amount to approximately Rs. 12 crores.
Furthermore, Mr Mukul Agrawal has been offered 21,62,162 shares or a 1.21 per cent stake and his investment in this allocation will amount to around Rs. 16 crores.
Additionally, the preferential allotment also includes shares allocated to other investors, Quant Mutual Fund, COEUS Global Opportunities Fund, New Vernon India Limited, Aamara Ventures LLP and others.
The funds raised through this preferential issue will likely be used to bolster the company’s capital base, potentially for expansion projects or to improve financial stability. The involvement of prominent investors can also signal confidence in the company’s future prospects and strategic direction.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 25 percent from Rs. 30.12 crores during the March quarter to Rs. 22.71 crores in the June quarter. On the other hand, the net profits showcased a transition from a net loss of Rs. 63.40 crores to a net profit of Rs. 5.59 crores during the same timeframe.
Other details:
The company is accredited by the Ministry of New and Renewable Energy as an Empanelled Supplier of Solar Water Pumps and a Roof Channel Partner.
These accreditations enable the company to offer the full range of subsidies available for solar systems, with all products designed to comply with the ministry’s standards.
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Additionally, the company has recently secured a power purchase agreement with MSEDCL (Maharashtra’s government distribution utility) to develop, own, and operate a 100 MW AC solar project under the KUSUM C scheme.
The project must be commissioned by September 2025, and the company is currently developing renewable energy parks to meet the increasing demand from open-access customers.
Company Profile:
Incorporated in 1980, Ravindra Energy Ltd is in the business of selling Solar Pumps, setting up Solar Generation Power plants (Ground Mount & Rooftop) and generation and sale of Power.
Written By Vaibhav Patil
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