Xpro India Limited raises Rs 125 crore; stock jumps 5% today

On July 10, 2023, the shares of Xpro India Limited soared 5.61%. The stock reached a new 52-week high of Rs 960 per share on BSE, reflecting the strong momentum and investor interest in the company. The current market capitalisation of the company is Rs 1,622.89 crore.

As the market concluded, both the Sensex and Nifty recorded gains, with the Sensex trading higher by 0.26% and the Nifty up by 0.28%.

On July 09, 2023, Xpro India Limited successfully raised Rs 125 crore in equity resources through the conversion of warrants issued to the Malabar India Fund Limited.
Details are as follows:

Xpro India Limited has successfully received the remaining balance of Rs 93.73 crore, constituting 75% of the warrant issue price from Malabar. As per their option to acquire equity shares, the Board of Directors allotted 16,40,000 equity shares of Rs 10 each at a premium of Rs 752 per share on July 9, 2023. Additionally, 8,20,000 bonus equity shares were allocated to Malabar through the capitalization of Rs 82 lakh from the Securities Premium account, in accordance with regulations.

Following these developments, Xpro’s equity capital now stands at Rs 20.67 crore, comprising 2,06,72,244 equity shares of Rs 10 each. The allotment has led to an increase of approximately Rs 123 crore in the Securities Premium, significantly boosting the net worth of the company and the book value per share.

The proceeds from the warrants issue have generated capital resources of around Rs 150 crore since the previous year. These funds are being directed towards the company’s growth objectives, with a primary focus on expansion.

The investment made by Malabar signifies the confidence and commitment of the investor community in Xpro India Limited’s performance and growth prospects. The company’s board and management remain dedicated to pursuing strategic and operational initiatives, underpinned by strong governance, to create value for all stakeholders.

Company profile

XPRO India Ltd is operating across multiple locations, primarily involved in the polymers processing business. Renowned as a top manufacturer in India, the company specialises in producing Coextruded Plastic Films, thermoformed liners and a range of speciality films, including dielectric films and specialized BOPP Films.

Xpro India Limited has an impressive compound annual growth rate (CAGR) of 47.4% over the past five years, the company has achieved substantial profit growth. It also maintains a commendable track record of return on equity (ROE), with a three-year ROE of 25.9%. Additionally, the recent increase in promoter holding by 1.35% reflects their growing confidence and commitment to the company’s success.

In the past three years, the stock has given multibagger returns of more than 5193%. Investors should keep a close eye on this trending stock.

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