Small-cap stock below ₹100: Hong Kong-based FII picks up stake in multibagger stock One Point One Solutions

Small-cap stock below ₹100: Ovata Capital, a Hong Kong-based investment manager, has acquired a stake in One Point One Solutions Ltd— a small-cap stock that has delivered multi-bagger returns to its long-term positional shareholders in year-to-date (YTD) time. The foreign institutional investor (FII) bought a stake in the small-cap firm through a preferential issue offered by the company.

One Point One Solutions Ltd informed about the Hong-Kong-based FIIs' investment in an exchange communication citing, “Allotment of 17,85,714 Equity Shares of the face value of Rs. 2 each upon conversion of warrants at an issue price of Rs. 56 each, upon receipt of the balance amount at the rate of Rs. 42 per warrant (being 75 per cent of the issue price per warrant) aggregating to Rs. 7,49,99,988.”

Established in 2017, Ovata Capital is a Hong Kong-based investment manager. Its flagship product, ‘Ovata Equity Strategies Master Fund,' focuses on Asian equities with four core strategy sleeves: Arbitrage, Relative Value, Event, and long/short. Significant investment synergies exist across the four core strategies, which are run as a team rather than as separate pods on a platform. James Chen is the Founder and Chief Investment Officer of Ovata Capital.

In case of a preferential issue, One Point One Solutions Ltd said in its exchange filing, “Pursuant to this allotment, the company's paid-up share capital is increased to Rs. 51,44,57,178/- (25,72,28,589 equity shares of face value of Rs. 2 each fully paid up). This means I17,85,714 warrants of Rs. 56 each (including premium of Rs. 54 ) aggregating to Rs. 9,99,99,984 only.

The small-cap company also detailed the specifications of the allotted price. In the case of convertibles, the allotted price is 25 per cent of the issue price was payable at the time of allotment of warrants (i.e. Rs. 2,49,99,996 ), and 75 per cent of the issue price was payable at the time of conversion of warrants (i.e. Rs. 7,49,99,988 ). The warrants are converted within 18 months from the date of allotment.

One Point One Solutions Ltd

On Friday, shares of One Point One Solutions Ltd. settled 0.15 per cent lower at ₹58.14 apiece on the NSE. The small-cap stock is 25 per cent lower than its 52-week high of ₹77.50. The Mumbai-based company specializes in customer lifecycle management, business process management, and technology services. It has eight centres and over 5,500 IT experts. It provides comprehensive solutions across B2B, B2C, digital business, and marketplace verticals.