Penny stock under ₹2: Teamo Productions HQ share price, a penny stock currently trading under ₹2, surged to ₹1.48 on Monday, November 11 after the company said it raised funds via a preferential share issue.
The company, formerly known as GI Engineering Solutions Limited, recently raised ₹17.43 crore through a preferential issue, boosting investor interest in the stock.
However, the stock reversed gains later to trade in the red. Teamo Productions HQ share price was down 2.76 per cent at ₹1.41 around 10.15 am on the BSE. The company enjoys a market capitalisation of ₹132.71 crore.
In filings submitted on November 9, 2024, to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), Teamo Productions confirmed that the funds were raised in two tranches, on August 20 and September 10, 2024. The company received the funds following the conversion of warrants, resulting in the issuance of 15.5 crore equity shares.
According to Teamo Productions, the raised funds have been fully utilised to meet working capital needs, capital expenditures, and strategic business initiatives. The audit committee reviewed the usage, confirming there was no deviation from the company’s stated purposes for the fundraise.
The successful fundraise indicates the company’s focus on strengthening its financial base and exploring growth initiatives, sparking optimism in its stock performance.
The company last month unveiled its September quarter (Q2) results, wherein it reported a 20.9 per cent year-on-year (YoY) increase in its revenue from operations at ₹145.55 crore as against ₹120.35 crore posted in the same quarter last year.
Meanwhile, its profit after tax (PAT) of ₹1.49 crore as against ₹0.28 crore on a YoY basis, signalling a growth of 431 per cent.
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