Sunshine Capital Soars 15% in Four Days: Penny Stock Hits Upper Circuit After Big Funding Announcement

Sunshine Capital’s share price hit its 5% upper circuit limit early on Wednesday, jumping to ₹2.43 per share on the BSE. This surge follows the company’s announcement of a significant new deal.

The non-banking finance company (NBFC) revealed it has agreed to a ₹196.49 crore funding arrangement with Man Stainless Steel Tubes Ltd (MSSTL). This money will help MSSTL build a new manufacturing unit for carbon steel pipes in Kathua, Jammu & Kashmir. The new unit is expected to have a capacity of 250,000 metric tons per year and will cost around ₹280.70 crore to complete.

Sunshine Capital will provide ₹1,964.90 million as a Rupee Term Loan (RTL) and a Capex Letter of Credit (LC) worth ₹1,450.00 million. The project is scheduled to finish by April 2025, with the loan repaid over nine years, including a 12-month construction and repayment moratorium.

Over the past week, Sunshine Capital’s share price has jumped 10%, and it’s up more than 7% in the last month. The stock turned ex-bonus and ex-split on March 7, 2024, issuing bonus shares in a 7:1 ratio and splitting the stock 10:1.

As of 10:20 am, Sunshine Capital’s shares remain locked at the upper circuit limit of ₹2.43.