Shares of this micro-cap stock dealing with Plastic Products jumped approximately 3 percent in Monday’s trading session after the company announced multiple developments, i.e., the launch of a digital platform, a couple of acquisitions, and many more. Year-to-date, the company’s stock jumped nearly 20 percent for its holders.
With a market capitalization of Rs 420.44 crores, the stocks of Shish Industries Limited opened their trading hour on Monday at Rs 117.85 and currently trade at Rs 121.30, gaining around 3 percent as compared to the previous closing levels of Rs 117.85 apiece.
Such bullish share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about a couple of developments that took place with the company.
Firstly, “InPackaging”, founded by Shish Global Solutions, a subsidiary company of Shish Industries, announced the launch of a digital platform at “Packaging for a Better World, 2024,” which was scheduled on 9th March 2024 in Ahmedabad.
The launch of the abovementioned platform will revolutionize the packaging industry with its comprehensive range of solutions with 5 verticals, i.e., packaging knowledge forum, packaging products & services, packaging rental marketplace, EPR & PWP infrastructure, and PRIDE Lab & Packaging Rating.
The new verticals shall cater to all industries and sizes of clients with the help of its wide network of business associates and franchisees.
Secondly, the company’s Board of Directors, in its meeting held on 7th March 2024, made a couple of decisions, some of which include the following:
● Approval of 100 percent acquisition of “Dunnage Bag Private Limited” by way of acquisition of all the equity shares at a total consideration of an amount not exceeding Rs 9.80 crores.
● Approval of acquisition of 76.67 percent stake in “Interstar Polyfab Private Limited” by way of acquisition of a requisite number of equity shares at a total consideration of an amount not exceeding Rs 4.80 crores.
● Approval of an issue of nearly 6.71 lakh equity shares of Rs 10 each of the company on a Preferential basis and issue of up to 36 lakh fully convertible equity warrants.
During the recent financial quarters, the company’s basic business parameters, i.e., its operating revenues as well as after-tax profits, showed movements in opposite directions.
The former, on one end, rose from Rs 20.46 crores during Q2FY24 to Rs 24.34 crores during Q3FY24, and the latter, on the other end, slipped from Rs 1.82 crores to Rs 1.53 crores due to increased cost pressure.
Founded in 2012, Shish Industries Limited is an India-based company engaged in the business of manufacturing corrugated sheets. The company’s product portfolio includes polypropylene corrugated sheets, and reflective insulation products such as dunnage bags, water tank insulation covers, sticky traps, cooler bags, and others.
Written by Amit Madnani
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