Shares of Gujarat Toolroom Limited, a company based in Gujarat, surged by 5% to hit the upper circuit limit on November 25, after the company announced the successful completion of a ₹31 crore order from Reliance Industries.
Key Highlights of the Announcement
Order Completion: Gujarat Toolroom stated that the completion of this ₹31 crore order is a significant milestone in its ongoing collaboration with Reliance Industries. This accomplishment further strengthens their partnership and demonstrates the company’s ability to execute high-quality projects on time.
Total Order Value in FY23: The company revealed that it has now completed ₹60 crore worth of orders for Reliance Industries in the current financial year, underscoring its growing relationship with the conglomerate.
Stock Performance: Gujarat Toolroom’s stock price rose 4.99% to ₹13.26 per share at 11:58 AM on the Bombay Stock Exchange (BSE), reflecting strong market sentiment. The company has a market capitalization of ₹212.35 crore.
Positive Outlook for Future Orders
Gujarat Toolroom expressed optimism about securing additional orders from Reliance Industries in the coming months. This potential for new business could further drive growth, improve revenue, and enhance profitability for the company. The company highlighted its commitment to excellence, innovation, and maintaining long-term industry relationships, particularly with prominent players like Reliance.
Fundraising via QIP
Earlier in October 2024, Gujarat Toolroom successfully raised ₹50 crore through a Qualified Institutional Placement (QIP) at an issue price of ₹11.50 per share. The offering saw strong interest from institutional investors, including Zeta Global Funds and Eminence Global Fund PCC Trade Fund, who together subscribed to half of the total equity shares issued.
QIP Details: The QIP involved the issue and allotment of 4,34,78,260 equity shares, with a premium of ₹10.50 per share, marking a major milestone in the company’s growth trajectory.
Investor Participation: Zeta Global Funds and Eminence Global Fund PCC Trade Fund each subscribed to 2,17,39,130 equity shares, representing 50% of the allotment.
Dividends and Robust Financial Position
In addition to its strong order completion and fundraising efforts, Gujarat Toolroom also declared a 100% dividend for the last quarter. This move is indicative of the company’s healthy cash flow and its commitment to delivering consistent value to its shareholders.
Stock Performance of Reliance Industries
Meanwhile, Reliance Industries also saw its stock price rise by 2.49%, reaching ₹1297.50 at 12:14 PM. The successful collaboration between Gujarat Toolroom and Reliance Industries is viewed as a positive indicator for both companies, boosting investor confidence.
Conclusion
Gujarat Toolroom’s successful execution of the ₹31 crore order and its strong financial moves, such as the QIP and dividend declaration, have positioned the company for continued growth. With the potential for additional orders from Reliance, the stock is likely to remain in focus for investors looking for growth in the industrial sector.
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