Penny Stock Below ₹1 Surges 4% as Srestha Finvest Calls EGM for Fundraising Approval

Penny stock Srestha Finvest grabbed attention on Friday, October 15, as its share price rose by nearly 4% to ₹0.82. The rise came after the company announced an Extraordinary General Meeting (EGM) to get shareholders’ approval for a fundraising plan, along with other proposals.

The stock, priced below ₹1, opened at ₹0.80, up from its previous close of ₹0.79. By 1:20 PM, it reached a day high of ₹0.82, gaining 3.8%.

The company is seeking approval from shareholders to raise capital through a Qualified Institutions Placement (QIP). The board had approved the fundraising plan on October 9, aiming to issue equity shares with a face value of ₹1 each, raising a total of ₹100 crore. These funds will be used to repay debt, meet working capital needs, and for general corporate purposes.

Additionally, the company is looking to issue up to 93 crore convertible equity warrants at ₹1.05 each to investors on a preferential basis. This is expected to raise ₹97.65 crore, which will further strengthen the company’s capital base and support general operations.

The third agenda item is to increase the company’s borrowing limit to ₹500 crore.

Stock Performance:

Over the past year, Srestha Finvest shares have risen by 30%, and by 27% this year. The stock is currently 36% below its 52-week high of ₹1.28 but 67% above its 52-week low of ₹0.49.