Penny stock under Re 1: NBFC share jumps on second straight session after fundraise move

NBFC Srestha Finvest share price jumped nearly 1.50 per cent on Wednesday's trading session after the company announced that it has received approval from BSE to raise over ₹97.65 crore via preferential issue.

The company has issued 93,00,00,000 equity shares at ₹1.5 each to non-promoters on preferential basis, according to the exchange filing.

“We would like to inform you that the Company has received an In-Principle approval(s) from BSE Limited vide their Letter No. LOD/PREF/MV/FIP/1776/2024-25 dated February 03, 2025 for issue of 93,00,00,000 warrants convertible into Equity Shares of Re. 1/- each at a price not less than Rs. 1.05/- to Non promoters on Preferential basis,” the company said in the filing.

The penny stock is trading at ₹0.69 on Wednesday, against previous close at ₹0.68 on Tuesday. The NBFC share has failed to impress the investors as the stock has declined over 10 per cent in past one month and 68 per cent in the last six months.

Srestha Finvest financial performance

In Q2FY25, the company reported operational revenue of ₹3.57 crore, an increase from ₹2.10 crore in the same quarter of the previous fiscal year. However, expenses surged to ₹19.37 crore from ₹5.40 crore year-over-year.

Consequently, Srestha Finvest's net loss escalated to ₹14.81 crore, compared to a loss of ₹3.29 crore during the corresponding quarter last year.

In the first quarter of FY25, the company achieved remarkable financial success, with revenue soaring by 1,634% to ₹3,950 lakh, up from ₹227.80 lakh in Q1 FY24.

Additionally, net profit experienced a substantial increase, rising from ₹43.90 lakh to an impressive ₹3,100.62 lakh, marking a staggering year-on-year growth of 6,963%. This surge can be attributed to strategic initiatives and heightened market demand.

The company conducted a 2:1 stock split on September 22, 2024, issuing two shares with a face value of ₹1 each for every one share with a face value of ₹2. This stock split aims to enhance liquidity and enable more investors to purchase shares at reduced prices.