Stock hits 5% upper circuit after promoters likely to acquire 26% via open offer at ₹60

This Microcap stock deals in the business of shares investments and textile trading hit a 5 percent upper circuit after Sandeep Jindal, Allied Commodities, and Prompt Vanijya triggered a 26% open offer from the public for Rs. 60.

Price Action (WA:ACT)

With a market capitalization of Rs.135.70 Crores, the shares of Balgopal Commercial Ltd (BO:BALG) were up by 5 percent in the day’s trade touching a day’s high of Rs. 82.19 per share. The stock stayed in the upper circuit limit which was 5 percent higher than the previous closing price of Rs. 78.28 apiece.

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What Happened

The stocks of Balgopal Commercial rose after Sandeep Jindal, Allied Commodities, Prompt Vanijya announced an open offer for the acquisition of up to 49,43,000 fully paid equity shares with a face value of Rs. 10 per share from the public shareholders of the company.

On 10th December 2024, the company announced a preferential share allotment of 25 lakh worth Rs. 15 crore to Allied Commodities. After the allotment, Allied would hold around 13.15 percent stake, triggering an open offer for the public. This share issue is subjected to approvals from shareholders, and regulators approval. The 26 percent of the emerging voting share capital is priced at Rs. 60 per share.

About the Company

Balgopal Commercial Ltd was established in 1982. They operate primarily in the trading of textiles, particularly sarees, ranging from plain to designer varieties. The company also engages in investments in shares and securities. Balgopal aims to expand its product offerings and distribution channels through wholesalers and retailers, focusing on improving its presence in the textile market while maintaining a debt-free status.

Products and Services

Balgopal Commercial Ltd specializes in the trading of textiles, primarily offering a diverse range of sarees, including plain, designer, cotton, and silk varieties. Balgopal aims to expand its product offerings through partnerships with wholesalers and retailers, enhancing its market presence.

Financials & Ratios

Its Revenue from operations declined by 5.8 percent year on year from Rs. 8.77 Crore in Q2FY24 to Rs. 8.26 Crore in Q2FY25, accompanied by profits of Rs. 4.11 Crore to Rs. 7.1 Crore.

In terms of Return ratios, it has reported a return on equity (ROE) of 16.15 percent and a return on capital employed (ROCE) of 16.53 percent. It has a net profit of 22.05 percent as of FY24.

Shareholding Pattern

As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 7.28 percent in Balgopal Commercial, and public holdings standing at 92.72 percent.

Written by Santhosh S

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