Penny stock under 5: BSE-listed NBFC stock rallies 20% to hit UPPER CIRCUIT - Here's why

penny stock under 5 srestha finvest bse-listed nbfc stock rallies 20 per cent to hit upper circuit - here's why

Penny Stock: Shares of NBFC Srestha Finvest on Tuesday rallied 20 per cent to hit the upper circuit. The microcap stock opened at Rs 2.06 against the previous close of Rs 1.81. It went on to hit the 20 per cent upper circuit at Rs 2.17 -- also its new 52-week high.

As many as 3.80 crore shares changed hands during today's trade, as per BSE data. The stock has been gaining for the last two sessions, yielding a return of 25 per cent. The counter is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Today's rally came as the company's board announced the record date for the Rights Entitlement in the Rights Issue.

"The Board of Directors at its meeting held today has fixed Friday, June 21, 2024 as the record date for the purpose of determining the equity shareholders who shall be entitled to receive the Rights Entitlement in the Rights Issue," according to a regulatory filing.

The Rights Entitlement of the eligible equity shareholders as on the Record Date, shall be credited prior to the issue opening date, in the respective Demat account of the eligible equity shareholders, the filing said.

Earlier this month, the firm had inked a facility agreement with Felix Industries Limited, aimed at financing projects focused on clean water access, water recycling and renewable energy sources across the country. It committed Rs 25 crore over the next 1-2 years to fund initiatives undertaken by Felix Industries in the renewable energy space.

Srestha Finvest is a non-banking finance company. The company's main business is lending money against securities, movable and immovable properties, finance, hire purchase and leasing. According to BSE analytics as on June 18, the NBFC stock has climbed 18 per cent in just one week and 28 per cent in two weeks. In one month, the strock has sprinted 64 per cent, resulting in wealth gain for investors.