Small-cap stock below ₹50: FII favourite company declares fundraise. Do you own it?

Small-cap stock below ₹50: Vipul Limited, a small-cap company trading below ₹50 per share and a favourite among Foreign Institutional Investors (FIIs), disclosed plans to explore various fundraising options.
Shares of Vipul Limited, a property developer, were trading up 0.59 per cent, at ₹27.09, on December 3, at 2:00 pm, on BSE. Vipul has a market capitalisation of ₹381.86 crore, BSE data shows.

Breakdown of shareholdings

Foreign institutional investors (FIIs) have shown significant interest in Vipul Limited, with a total holding of 1,01,97,015 shares, representing 7.23 per cent of the company's equity. Category I Foreign Portfolio Investors (FPIs) hold 47,50,351 shares, led by NAV Capital VCC’s Emerging Star Fund with 26,37,131 shares and full voting rights. Category II FPIs, including Moneyplant Gold & Jewellery Trading L.L.C., hold 54,46,664 shares. This strong FII presence, particularly NAV Capital’s influence with over 55 per cent of the voting rights in its category, highlights growing confidence in Vipul Limited’s growth potential.

The Board of Directors of Vipul Limited is set to meet on December 10 to consider and approve the issuance of equity shares or other instruments like convertible preference shares, bonds, or non-convertible debentures. The fundraising could be executed through multiple channels, including qualified institutional placements (QIPs), rights issues, or private placements, it said in filing to the stock exchange.

The Nifty Realty index was 0.38 per cent down at 1050 at the time of writing this report.

This move to raise funds indicates the company's ambitions for growth and expansion, potentially offering existing shareholders new opportunities. Notably, Vipul Limited has announced a trading window closure from December 4 to December 12, 2024, in compliance with insider trading regulations.

As Vipul Limited stock remains a focus for institutional investors, retail shareholders might consider whether the property developer's upcoming fundraising efforts align with their investment strategy. With FIIs holding a significant stake, the company’s plans could unlock value.