Penny stock at Rs 2.58 was locked in the upper circuit on May 14; Company entered into a SPA & acquired a 6.24 per cent stake in Industrial Investment Trust Ltd
The stock of Advik Capital Ltd has seen a significant increase of 36 per cent from its 52-week low of Rs 1.90 per share. Today, the shares of the company were locked in at Rs 2.58 per share, up by 5 per cent from its previous closing of Rs 2.46. The stock’s 52-week high is Rs 4.35.
Advik Capital is a Non-Banking Financial Company (NBFC) with total assets of Rs 200 crore. The company is aiming to achieve the status of a Systemically Important Non-Banking Financial Company (SIB-NBFC) by 2025. To achieve this goal, Advik Capital is implementing an expansion strategy that includes diversifying its business offerings, exploring new sectors like healthcare, and enhancing its existing operations. The company is also investing in resources to strengthen its operations and attract industry experts in risk management, operations, governance, and technology.
By obtaining SIB-NBFC status, which requires a minimum asset base of Rs 500 crore, Advik Capital will be able to offer more complex financial products and solidify its market position. The recent launch of a Rs 250 crore Alternative Investment Fund (AIF) focused on new sectors and the acquisition of an Asset Reconstruction Company (ARC) further position the company to capitalize on India’s growing AIF and ARC markets. Recognition as a Systemically Important NBFC by the Reserve Bank of India will enhance its role in maintaining financial stability and provide access to specialized market segments.
In addition, Advik Capital has entered into a share purchase agreement for the acquisition of control and equity shares in Industrial Investment Trust Limited. The company has a market capitalization of Rs 110 crore and has shown a profit growth of 70 per cent CAGR over the last 3 years. The promoters own 21.80 per cent of the company, while the public holds the remaining 78.20 per cent as of March 2024.
Disclaimer: This article is for informational purposes only and not investment advice.