In a recent development, two microcap stocks have shown positive movement in the market following their plans to raise funds through preferential issues. A “Preferential Issue” involves companies, both listed and unlisted, raising funds by issuing equity shares or convertible securities to a specific group of investors.
One of the companies in focus is Radhe Developers (India) Limited, specializing in Real Estate Development, with a market capitalization of Rs 220.07 crores. On Monday, their stocks closed at Rs 4.37, experiencing a gain of approximately 0.70 percent compared to the previous closing levels of Rs 4.34. According to a recent regulatory filing with the Bombay Stock Exchange (BSE), the company’s Board of Directors has given approval for fundraising through a preferential issue.
The approved preferential issue involves up to 2.01 crore equity shares with a face value of Rs 1 each. This issuance is directed towards the conversion of unsecured loans amounting to Rs 8.56 crores, with an issue price of Rs. 4.25 per share. However, this approval is subject to the agreement of the members in the General Meeting and other necessary statutory and regulatory approvals.
Another company making headlines is Jhaveri Credits and Capital Limited, operating in the business of providing a broking platform for dealing with commodities in spot and futures markets. With a market capitalization of Rs 217.88 crores, their stocks witnessed a positive trend, closing on Monday with a 2 percent upper circuit at Rs 337.10. Similar to Radhe Developers, Jhaveri Credits and Capital Limited has obtained approval for fundraising through a preferential issue, as disclosed in a regulatory filing with the Bombay Stock Exchange (BSE).
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