Over 700% returns in one year! Multibagger small-cap stock hits upper circuit for seventh straight session

Multibagger Stock: Shares of Eraaya Lifespaces were locked in the 5% upper circuit limit for the seventh consecutive trading session on Monday, January 20, at ₹131 after the company released an update on convertible warrants.

The company today announced the allotment of 2,70,00,000 (Two Crore Seventy lakhs) fully convertible warrants to specific parties, following approvals from its board, shareholders, and the BSE. The allottees include M/s Just Right Life Limited (1.5 crore warrants), Vikas Garg (50 lakh warrants), M/s Vikas Lifecare Limited (50 lakh warrants), and P K Gupta (20 lakh warrants).

Each warrant entitles the holder to subscribe to one equity share after paying 25% of the issue price, with the remaining amount due within 18 months. The warrants are issued on a preferential basis and are subject to a lock-in period as per SEBI regulations, as per the company's regulatory filing.

Meanwhile, the company in December said that its Indian subsidiary, EbixCash, has been selected by KSRTC as the technology solution provider for the supply, commissioning, and maintenance of smart electronic ticketing machines (ETMs) as part of a comprehensive ticketing solution. This five-year contract, valued at approximately ₹335 million, covers all state-run buses.

It involves implementing EbixCash’s Automatic Fare Collection System (AFCS) on Android-based ticketing devices with digital payment options tailored to KSRTC’s business rules. Over 10,000 devices will be deployed across 84 depots, serving a fleet of 8,000 buses, with plans to expand to up to 15,000 devices over the next five years.

EbixCash has also been chosen as the technology partner for operating and managing Data Centre of ITI Limited, a public sector undertaking under the Ministry of Communications, Government of India.

Small-cap stock surges 700% in a year

The stock has been consistently hitting the 5% upper circuit limit in recent months, providing impressive returns to shareholders. Over the past year, it has surged 756%, and in the last two years, it has delivered an astonishing return of 14,461%. Over the past three years, the stock has increased by 15,881%. The stock has been trading on ex-split basis in the ratio of 1:10 since December 2024.

As of the end of October 2024, the general public holds the majority stake in the company at 36.7%, while promoters own 35.2% and foreign institutional investors (FIIs) hold 26.83%, according to Trendlyne shareholding data.

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