Penny stock rallies over 400% in 5 years, Board approves ₹150 Cr rights issue

The company has said in a stock exchange filing that the board of directors has, “inter alia, discussed and approved the following: 1. Fund raising by way of an issuance of equity shares of face value of Rs.1/- each of the Company to its eligible equity shareholders on a rights basis (“Rights issue”) for a value not exceeding Rs. 150 Crores (One hundred and Fifty Crores Rupees Only), subject to receipt of necessary approvals from regulatory authorities, as applicable and in accordance with applicable provisions of the Companies Act, 2013, as amended, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and other applicable laws. 2. Constitution of a Special Committee of Board of Directors, in the name and style of ‘Rights Issue Committee’ to decide on the matters relating to right issue which includes, inter-alia to approval of the draft letter of offer, letter of offer along with any amendments, supplements, notices or corrigenda thereto, approval of pricing and terms of the equity shares, right entitlement ratio, date of on-market renunciation, the bid-issue opening and closing date, discount (if any) and all other related matters, including the determination of the minimum subscription for the issue, appointment of Registrar and share transfer agents, legal counsel, advisors and other intermediaries.in accordance with applicable laws.”

The Board of Mishtann Foods further announced that they have approved “Increase in Authorized Share Capital of the Company from Rs. 100,00,00,000/- (Rupees One Hundred Crores Only) to Rs. 130,00,00,000/- (Rupees One Hundred and Thirty Crores Only) by creation of additional 30,00,00,000/- (Thirty Crores Only) Equity Share of Rs. 1/- (Rupees One Only) each and consequent amendment to Clause V of the Memorandum of Association of the Company, subject to the approval of Members through Postal Ballot.”

The shares of Mishtann Foods Ltd closed on Friday at ₹8.82 apiece level, down by 0.56% from the previous close of ₹8.87 on BSE. The stock recorded a total volume of 2,632,580 shares compared to the 20-Day average volume of 2,788,215 shares. The stock has posted a multibagger return over the past five years of 488.00%, but a decline of 36.23% during the past year. The stock has dropped 3.29% over the past six months and 6.67% over the past month. The stock had touched a 52-week-high of ₹19.55 on (24/01/2022) and a 52-week-low of ₹7.90 on (10/08/2022), indicating that at the current market price, the stock is trading 54.88% below the 1 year high and 11.64% above the 1 year low. For the quarter ended September or Q2FY23, the company reported a promoter shareholding of 49.77% and a public stake of 50.23%.