Penny stock hits 5% upper circuit as company completes ₹31 crore order from Reliance Industries

Penny stock: Shares of Gujarat Toolroom Limited, a Gujarat-based company, hit the 5 per cent upper circuit on Monday, November 25 after the company said it has successfully executed an order worth ₹31 crore for Reliance Industries. 

This achievement marks another significant milestone in our collaboration with Reliance Industries, underscoring our capability to deliver high-quality projects within stipulated timelines, the company said in an exchange filing on Monday.

Gujarat Toolroom has now completed ₹60 crore worth of orders for Reliance Industries in the current financial year.

Gujarat Toolroom share price was trading in the green, up 4.99 per cent, at ₹13.26 apiece at 11:58 am on BSE. The company enjoys a market capitalisation of ₹212.35 crore. Meanwhile, Reliance Industries share price was up 2.49 per cent at ₹1297.50 at 12:14 pm.

Gujarat Toolroom expressed optimism about securing additional orders from Reliance in the coming months, which could further boost revenue and profitability.

These accomplishments highlight our company’s unwavering commitment to excellence, innovation, and building long-term relationships with industry leaders, it added.

Gujarat Toolroom fundraise

Earlier this year, in October, Gujarat Toolroom Limited raised ₹50 crore via a Qualified Institutional Placement (QIP) at an issue price of ₹11.50 per share. The offering saw strong participation from institutional investors, including Zeta Global Funds and Eminence Global Fund PCC Trade Fund.

In its exchange filing, the company stated, “Gujarat Toolroom is delighted to announce the successful completion of its Qualified Institutional Placement (QIP), raising ₹50 crore through the issue and allotment of 4,34,78,260 equity shares at a price of ₹11.50 per share, including a premium of ₹10.50 per share. This represents a significant milestone in the Company’s ongoing growth journey.”

Zeta Global Funds (OEIC) PCC Ltd and Eminence Global Fund PCC Trade Fund 1 each subscribed to 2,17,39,130 equity shares, collectively accounting for 50% of the total allotment, according to a filing.

Other developments

In addition, the company declared a 100 per cent dividend for the last quarter, showcasing its robust cash flow and consistent value delivery to shareholders.

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