Shares of this micro-cap stock climbed over 17 percent on Thursday morning after securing an Rs.16 crore order from Galaxy Echo Industries Private Limited for the supply of Chana Dal and Toovar Dal.
Price Movement
In Wednesday’s trading session, IGC Industries Ltd’s share price reached an intraday high of Rs.20.15 per share, up 17.35 percent from its previous closing price of Rs.17.17 apiece. The share has since retreated and is currently trading at Rs.18.99 each.
What is the news
IGC Industries Limited, a prominent player in the agro-products sector, has secured purchase orders worth approximately Rs.16 Crore for the supply of Chana Dal and Toovar Dal from Galaxy Echo Industries Private Limited.
To support this growth, IGC Industries plans to invest about Rs. 10.5 Crore in expanding its production capacity for these products. The expansion will be financed through a combination of Rs.7 Crore from internal accruals and Rs.3.5 Crore in debt.
Product Range
The company offers a diverse product range across multiple sectors. In textiles, it specializes in fabrics made from cotton, silk, polyester, and other materials. In the agro-commodities sector, the company deals in organic fennel seeds, cumin (jeera), cotton, and turmeric.
Additionally, it supplies aluminum products, melamine, and steel in the metals and plastics category, catering to a wide range of industries.
Rights Issue
IGC Industries has launched a rights issue, which began on November 4, 2024, and will close on November 18, 2024. Shareholders can purchase shares at Rs.13 each, with the total offering amounting to approximately Rs.42.22 crores for 32.48 million equity shares.
Financial Performance
In its recent financial update for the quarter ending September 2024, IGC Industries Ltd. reported revenue from operations of Rs.1.99 crore, from nil revenue in Q2 FY24. Net Profits improved to Rs.0.28 crore from a net loss of Rs.0.01 crore in the same period.
About the Company
IGC Industries Ltd. was incorporated in 1980 and is based in Kolkata, India. The company operates primarily in the textiles sector, functioning as a trader and distributor of various commodities, including fibers, fabrics, and textiles made from cotton. Additionally, it deals in metals, plastics, and agricultural products such as organic spices and grains.
Written by – Siddesh S Raskar
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