Rs 1,156 crore order book & FIIs increase stake: Heavy buying witnessed in this multibagger civil construction stock; hit back-to-back 52-week high!

The stock gave multibagger returns of over 100 per cent in just 6 months whereas BSE Small-cap Index is 32.5 per cent.

Today, shares of Man Infraconstrcution Ltd gained 6.47 per cent to Rs 209.95 per share from its previous closing of Rs 197.2 per share. In its recent trading sessions, the stock has been hitting back-to-back 52-week highs.

Capitalizing on the booming real estate market, MICL prioritizes expanding its footprint through strategic acquisitions and accelerated project completion. To fuel this growth, the company seeks long-term capital, leveraging its positive market momentum, proven execution track record, and strong financial standing. The proposed convertible equity warrants infusion is positioned to propel MICL's business towards robust future growth.

The board has approval for a fund-raising initiative of approximately Rs 550,32,75,000. The company plans to raise the funds by issuing convertible equity warrants through a preferential issue, subject to regulatory approvals. The company will seek shareholder approval, where required. The funds will be raised through the issue of up to 3,55,05,000 warrants, each convertible into one equity share of Rs 2 face value at a price of Rs 155 per warrant, including a premium of Rs 153. The total amount to be raised is Rs 550 crore.

In the allotment, Aditya S Chankad (son-in-law of Radhakishan Shivkishan Damani) was allocated 32,40,000 warrants and Quant Mutual Fund was allocated 17,50,000 warrants. Along with this various FIIs, FPIs and individual investors. Along with this allocation, various institutional investors including FIIs, FPIs, and individual investors also participated in the allotment.

Man Infraconstruction Limited (MICL) is an integrated EPC (engineering, procurement & construction) company with experience and execution capabilities in port, residential, commercial & industrial and road construction segments. 

The company reported positive financial results in both its quarterly report (Q2FY24) and annual report (FY23). As of September 30, 2023, the company's order book stands at Rs 1,156 crore, with 86 per cent of the orders coming from infrastructure projects and 14 per cent from residential projects. As of September 2023, FIIs have increased their stake from 2.39 per cent to 3.72 per cent. 

The shares of the company have a PE of 20.1x whereas the industry PE is 39.2x and a ROE of 26.40 per cent & a ROCE of 32 per cent. The stock gave multibagger returns of over 100 per cent in just 6 months whereas BSE Small-Cap Index is 32.5 per cent. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.