Up 440% in a year: Multibagger stock hits upper circuit after fundraising announcement

Shares of Ok Play India Ltd hit an upper circuit during the trading session on Tuesday after the company announced issuance of equity shares and warrants on a preferential basis. The company informed about the same through an exchange filing on Monday after its board meeting earlier during the day.

The company board approved to issue 25.75 lakh fully paid-up equity shares of the company on a preferential basis at an issue price of Rs 125 apiece for a total consideration of Rs 32,18,75,000 only, said the exchange filing with the bourses. The allotment has been done to non-promoter corporate and individual investors.

"The allotment of equity has been made to 12 investors including Saint Capital Fund, Leisure Enterprises LLP, Earthbound Ventures LLP, Ashika Global Finance and other individual investors," the filing added.

Also, the company has also issued 10 lakh convertible warrants on a preferential basis, carrying an entitlement to subscribe for equivalent number of fully paid-up equity shares of the company, at a price of Rs 135 apiece for a total consideration of up to Rs 13.50 crore, it said.

The warrants have been issued for four investors including Badjate Stock Broking, Leisure Enterprises LLP and Earthbound Ventures LLP. The subscribers of the warrants need to pay 25 per cent of the amount at the time of subscription, while the remaining 75 per cent shall be paid on the time of conversion with a period of 18 months.

Following the announcement of issues, shares of Ok Play India hit an upper circuit of 5 per cent to Rs 156.50 on Tuesday, commanding a total market capitalization of close to Rs 415 crore. The scrip had settled at Rs 149.05 in the previous trading session on Friday.

Shares of Ok Play India have surged about 440 per cent from its 52-week low at Rs 29.15 hit a year ago, while the stock has gained about 220 per cent in the year 2023 so far. The stock has surged more than 50 per cent in the last one-month period.

The company shall convene its extraordinary general meeting (EGM) of the shareholders of the company on December 20, 2023, Wednesday For the purpose of obtaining their approval to issue of equity shares and warrants on a preferential basis, it added in the filing.

OK Play India, established in 1989, is a company dedicated to the production of plastic molded toys, school furniture, outdoor play equipment, point-of-purchase products, automotive components, and electric vehicles. The company is also engaged in manufacturing plastic fuel tanks for heavy commercial vehicles.

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