Penny stock rallies 1,184% in 3 years, Board declares rights issue of ₹49 Cr

The company said today in a stock exchange filing that “This is further to our intimation on the outcome of the meeting of the Board of Directors of the Company (“Board”) dated April 16, 2022, where the issue equity shares of the Company of face value of Rs.1 each (‘Equity Shares’) was approved by way of a Rights Issue for an amount not exceeding Rs.49.90 crores.” (Rupees Forty-Nine Crore and Ninety Lacs) (“Rights Issue”), in accordance with the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended and other applicable laws. In furtherance to the same, we hereby inform that in accordance with Regulation 29(1)(d) of the Securities and Exchange Board of India Regulations, (Listing Obligations and Disclosure Requirements) 2015, a meeting of the Board of Directors of the Company is scheduled to be held on Monday, December 19, 2022 to consider various matters relating to the Rights Issue including terms and conditions such as the determination of the Rights Issue price and related payment mechanism, Rights Issue size, Rights Entitlement ratio, the Record Date and timing of the Rights Issue and other matters incidental or connected therewith.”

The shares of Visagar Financial Services closed today at ₹1.96 apiece, down by 5.77% from the previous close of ₹2.08. The stock recorded a total volume of 743,544 shares compared to the 20-Day average volume of 583,439 shares. The stock has produced a multibagger return of 509.28% over the past five years, and a multibagger return of 1,184.78% during the past three years. The stock has appreciated by 37.76% during the past year, but on a YTD basis, it has plummeted by 32.76% so far in 2022. The stock had touched a 52-week-high of ₹6.97 on (28/01/2022) and a 52-week-low of ₹1.22 on (23/11/2022). For the quarter ended September 2022 or Q2FY23, the company posted a promoter shareholding of 5.34% and a public stake of 94.66%.