Rakesh Jhunjhunwala to invest Rs 31 cr in Raghav Productivity Enhancers; stock zooms 7 times in less than 1-yr

Raghav Productivity Enhancers share price surged to a record high of Rs 716,90 apiece intraday on BSE, after the industrial goods company informed that Rakesh Jhunjhunwala will invest Rs 31 crore in the company. The stock hit 5 per cent upper circuit on Monday, rising seven times or 617 per cent in less than one year. Ace investor Rakesh Jhunjhunwala will buy 6 lakh unsecured compulsory convertible debentures (CCDs) worth Rs 30.90 crore. Raghav Productivity Enhancers stock has zoomed 1,715 per cent from its all-time low of Rs 39.5, touched in April 2016.

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Raghav Productivity Enhancers will issue 6 lakh CCDs at a price of Rs 515 per unit. Each CCD will carry a simple interest rate of 15 per cent. The CCDs will be converted into equity shares at the end of 18 months from the date of allotment, and the relevant date of the deal is 26 July 2021, according to the BSE filing. “The board approved the conversion price of equity share at the higher of the following: i) Rs 515 per share including the premium of Rs 505 per share, ii) Price as determined as per Regulation 164(1) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, Relevant date referred to in regulation 161(a) to be considered for the same,” the filing added.

In traded volume terms, a total of 4,900 shares have exchanged hands on BSE so far in the day. Raghav Productivity Enhancers shares were listed at Rs 28.6 on April 13, 2016. In the last month, Raghav Productivity Enhancers shares have soared 63 per cent. In comparison, BSE Sensex was trading 375 points or 0.71 per cent higher at 52,962.40 levels.

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Raghav Productivity Enhancers’ net profit rose 637.93 per cent to Rs 4.28 crore in the quarter ended June 2021 as against Rs 0.58 crore during the previous quarter ended June 2020. The company’s sales increased 127.23 per cent to Rs 20.61 crore in the quarter ended June 2021 as against Rs 9.07 crore during the previous quarter ended June 2020. According to the shareholding pattern as of June 30, 2021, promoters’ stake stood at 69.61 per cent.