Synopsis:
Two penny stocks, including U.H. Zaveri Ltd and Healthy Life Agritec Ltd, surged to their upper circuits following announcements of rights issues aimed at strengthening finances and supporting growth.
Two penny stocks rallied sharply and hit the upper circuit after their respective companies announced rights issues, as investors reacted positively to the fundraising move aimed at strengthening balance sheets, reducing debt, and supporting future growth plans.
What are Right Issues and its importance?
A Rights Issue is a method by which a publicly traded company raises additional capital by issuing new shares to existing shareholders in proportion to their current holdings, typically at a discount price. Because the offer is only made to existing shareholders, they have the option to buy more shares while maintaining their ownership percentage, preventing dilution of their stake if they choose to participate.
A Rights Issue is significant because it allows companies to raise funds without incurring additional debt, making it a preferred option for financing expansion, repaying loans, or strengthening working capital.
For investors, it represents an opportunity to purchase shares at a lower price than market value, potentially benefiting from future growth; however, it also necessitates a thorough examination of the company’s financial health and reasons for fundraising.
Below are stocks that announced Rights Issue
1. U. H. Zaveri Ltd
The company has announced a Rights Issue to raise Rs. 20.39 crore at a 2:1 ratio, allowing existing shareholders to buy 2 new shares for every 1 share they currently hold. This helps the company strengthen its finances, fund expansion, or reduce debt, while giving shareholders an opportunity to maintain their ownership stake.
The record date is 3rd October 2025, which is used to identify eligible shareholders who have the right to participate in the issue. The issue will be open for subscription from 30th October to 10th November 2025, during which shareholders can either subscribe to the new shares or sell their rights in the open market.
With the market capitalization of Rs. 16.81 crore, the shares of U. H. Zaveri Limited is trading at Rs.16.49, hitting an upper circuit of 2 percent from its previous day’s close price of Rs. 16.17 per equity share.
About the Company
U.H. Zaveri Limited, founded in 1999 and based in Ahmedabad, is an Indian jewelry company engaged in wholesale, retail, and trading of gold and silver jewelry, including earrings, necklaces, bangles, rings, and other items, with or without precious or semi-precious stones. The company offers custom designs, gold buyback services, and operates showrooms featuring contemporary, antique, kundan, polka, and temple-style jewelry.
Financial Outlook
The company reported a revenue of Rs. 5.60 crore in Q1FY26, up 1.63 percent YoY from Rs. 5.51 crore in Q1FY25 and 42.5 percent QoQ from Rs. 3.93 crore in Q4FY25, while profit declined sharply to Rs. 0.02 crore from Rs. 0.13 crore YoY, reflecting margin pressures despite top-line growth.
At the moment, the company’s P/E ratio is 210x higher as compared to its industry P/E 28.8x. The company’s ROE and ROCE are 1.08 percent and 0.87 percent respectively, and the D/E ratio of 0.64, indicates the company’s financial performance.
Also Read: Smallcap stock jumps after company denies speculation about its promoter selling 10–15% stake
2. Healthy Life Agritec Ltd
The company has announced a Rights Issue to raise Rs. 24.81 crore with a 1:1 ratio, giving existing shareholders the option to purchase 1 new share for every 1 share they currently own. This move aims to strengthen the company’s finances, support growth initiatives, or reduce debt, while allowing shareholders to preserve their ownership percentage.
The record date, set for 26th September 2025, is used to determine which shareholders are eligible to participate in the issue. The subscription period runs from 7th October to 31th October 2025, during which shareholders can either buy the new shares or sell their rights on the open market.
With the market capitalization of Rs. 104.06 crore, the shares of Healthy Life Agritec Limited is trading at Rs. 42.01, hitting an upper circuit of 5 percent from its previous day’s close price of Rs. 40.01 per equity share.
About the Company
Healthy Life Agritec Limited, founded in 2019 and based in Thane, is an Indian company engaged in trading milk, live poultry, and fresh meat products. It offers a wide range of dairy products, beverages, spices, cereals, bakery items, and sauces, catering to diverse food and grocery needs across India.
Financial Outlook
The company reported revenue of Rs. 84 crore in H2 FY25, down 4.54 percent from Rs. 88 crore in H1 FY25 and 9.68 percent YoY from Rs. 93 crore in H2 FY24. The company reported a net profit of Rs. 2 crore in H2FY25, up 50 percent from Rs. 1 crore in H1 FY25.
At the moment, the company’s P/E ratio is 31.9x higher as compared to its industry P/E 30.3x. The company’s ROE and ROCE are 10.6 percent and 13.3 percent respectively, and the D/E ratio of 0.22, indicates the company’s financial performance.
Written by Akshay Sanghavi
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