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Shares of Raghav Productivity Enhancers Ltd, a small-cap firm, remained in focus on Monday, recording fresh highs after the company announced billionaire investor Rakesh Jhunjhunwala will invest up to ₹30.90 crore through unsecured compulsory convertible debentures. The stock on Monday closed at an all-time high of ₹716.90, up ₹34.10 or 4.99 per cent, over the previous day’s close.
Pref issue at ₹515 a share
The company on Sunday informed the BSE the CCDs will be allotted to Jhunjhunwala by way of a preferential issue on a private placement basis. The ace investor, often known as India’s Warren Buffett, will be allotted up to 6 lakh CCDs at ₹515 each. The CCDs will carry a simple interest rate of 15 per cent per annum.
These CCDs will be converted into equity shares at the end of 18 months from the date of allotment. The board approved the conversion price of equity share at the higher of the following: ₹515 a share or a price determined as per SEBI norms, the company said in its filing.
BSE-SME IPO
The company, formerly Raghav Ramming Mass, hit the capital market in April 2016 at an issue price of ₹39 through BSE SME platform. It is engaged in the business of ramming mass mineral. It offers white silica sand, casting powder, white ramming mass, premixed ramming mass, quartz silica ramming mass etc. The stock migrated to BSE main platform in October 2019.
The BSE-listed company’s shares have jumped nearly 1,738 per cent from IPO price in the past five years. It jumped 610 per cent in the last one year. The company had issued bonus shares in the ratio of 2:5 (two shares for every 5 held) in 2018. If one accounts for this also, the stock’s return would be almost 2,500 per cent for the small-cap stock.
The company has declared positive results for the last two consecutive quarters. For the quarter ended June 30, its net profit increased to ₹4.28 crore. Its net sales stood at ₹20.61 crore.
Currently, promoters Kabra family ( Sanjay, Rajesh, Savita, Krishna and Rashmi) hold 69.61 per cent stake in the company. Some 1,400 small investors hold 7.77 per cent and 20 HNIs 14.39 per cent.
According to marketmen, with the entry of Jhunjhunwala, the stock may see some retail and institutional interest. However, as the stock is not listed on the NSE, liquidity will be very less.
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