Hazoor Multi Projects, a notable player in the small-cap stock arena, recently made headlines with a significant announcement. On May 2, the company revealed that its fundraising committee has approved the allocation of 10,00,000 equity shares through the conversion of warrants. These shares will be issued at ₹30 each, reflecting a face value of ₹1 per share, marking a pivotal moment for investors.

Details of the Allotment

The share issuance follows the conversion of 1,00,000 warrants, which were initially priced at ₹300 each. According to a recent filing on the BSE, this move comes after the company’s decision to adjust its share structure, transitioning from a nominal value of ₹10 per share to ₹1 for ten shares.

• Key Highlights:
  • 10,00,000 equity shares issued at ₹30 each.
  • Conversion of 1,00,000 warrants at an initial price of ₹300 per warrant.
  • The nominal value adjustment from ₹10 to ₹1 per share.

Investor Insights

These newly issued shares are allocated to Rakesh Laroia, a non-promoter/public category investor, on a preferential basis. This strategic move follows the receipt of ₹2.25 crore, which constitutes 75% of the total warrant price.

Hazoor Multi Projects now reports an increase in its issued and paid-up capital, reaching ₹22.41 crore, comprised of 22.41 crore equity shares at ₹1 each. Importantly, these new shares will hold the same rights as existing equity shares.

Future Potential

Currently, the company has 88,85,200 warrants still available for conversion. Warrant holders can convert these into equity shares by paying the remaining 75% (i.e., ₹225 per warrant) within the stipulated 18 months from the allotment date.

Stock Performance Overview

In terms of stock performance, Hazoor Multi Projects has experienced both highs and lows. While it achieved remarkable multibagger gains over the long term, the recent trends show a decline:

• 15% drop in the last month.
• 29% decrease year-to-date.
• Nearly flat performance over the past year, with a slight dip of 0.5%.

Despite these short-term challenges, the stock has soared 284% over the last two years, a staggering 1,676% in three years, and an eye-popping 37,730% over five years.

Conclusion

Hazoor Multi Projects remains a fascinating small-cap stock to watch. With significant share allotments and a history of impressive returns, investors may want to keep a close eye on its future developments. As the market fluctuates, this company’s potential for growth could offer exciting opportunities for savvy investors looking to expand their portfolios.