Multibagger penny stock Evexia Lifecare declares preferential issue at ₹3.60 per share. Details here

Multibagger penny stock Evexia Lifecare caught investors' attention on Monday, as the stock surged by almost 5 per cent following the company’s announcement of a new fundraising initiative.

The company’s board approved the preferential issue of up to 24 crore convertible warrants, each priced at ₹3.60. These warrants can be converted into fully paid-up equity shares, with a face value of ₹1 and a premium of ₹2.60 per share, totalling ₹86.4 crore. This issue will be executed in accordance with Sections 42 and 62 of the Companies Act 2013 and related rules. Approval from shareholders and relevant regulatory authorities will be sought before moving forward, and proposed allottees will be required to make an upfront payment of 25 per cent of the total issue size, per the company’s filing.

Stock Market Performance

Evexia Lifecare's stock has demonstrated remarkable performance, rising 4.6 per cent on Monday to hit its 52-week high of ₹3.81 in intra-day trading. The stock has surged an impressive 146 per cent from its 52-week low of ₹1.55, recorded in December 2023.

In the past year, the stock has delivered multibagger returns of 108 per cent. Year-to-date (YTD) in 2023, it has rallied by 103 per cent, offering positive returns in 6 of the 9 months this calendar year. In September alone, it climbed 12.5 per cent, marking a third consecutive month of gains. The penny stock also rose 12.3 per cent in August and 24.7 per cent in July, reflecting sustained investor interest.

Shareholding Patterns

The shareholding structure of Evexia Lifecare showcases diverse ownership. Foreign portfolio investors (FPIs) hold a 1.03 per cent stake in the company, while banks and mutual funds own smaller stakes of 0.13 per cent and 0.4 per cent, respectively. The promoter group controls 6.29 per cent, with the remaining 93.71 per cent held by public shareholders, according to the June 2024 quarter data.

Earnings Overview

Evexia Lifecare reported strong earnings growth in the June 2024 quarter. Net Sales increased by 45.65 per cent to ₹20.42 crore, up from ₹14.02 crore in June 2023. The company's Net Profit for the quarter soared by 253.68 per cent, reaching ₹0.26 crore compared to ₹0.07 crore in the same period last year. EBITDA also saw a significant jump, rising 130 per cent to ₹0.46 crore, up from ₹0.20 crore in the June 2023 quarter.

Despite the stock's impressive performance, market experts advise investors to be cautious. Penny stocks like Evexia Lifecare are known for their volatility, and sudden corrections could accompany the stock's rapid rise. The company's ability to effectively utilize the new capital raised through the convertible warrants and the outcomes of upcoming regulatory approvals will be key to its long-term growth prospects. Investors should monitor the company's board decisions and fundraising methods closely.

Evexia Lifecare Limited operates through its subsidiaries and trades various products, including chemicals, edible oils, diamonds, gold, and plastic granules. The company also provides web and software development services and manufactures eBikes. Previously known as Kavit Industries Limited, it rebranded as Evexia Lifecare in January 2021. Established in 1990, it is headquartered in Vadodara, India.