Ethanol stock surged by 5% to hit the upper circuit following its approval of a share capital increase and strategic acquisitions
Ethanol stock : One of the microcap ethanol stocks involved in trading petroleum-based products such as biofuels, bitumen, and furnace oils, as well as specializing in the operation and maintenance of ethanol manufacturing in government-owned distilleries, has recently seen a surge in its stock price. This surge occurred after the approval of the company’s authorized share capital increase and strategic acquisitions of two companies.
Stock Price Movement
Greenhitech Ventures Limited, with a market capitalization of Rs. 56.78 crores, experienced a 5 percent increase in its stock price, reaching an upper circuit of Rs. 120.80 per share on Wednesday. This was a significant rise from its previous closing price of Rs. 115.05 per share.
What Happened
During Greenhitech Ventures Limited’s board meeting on January 21, 2025, several important corporate actions were approved. These actions included an amendment to the Articles of Association to facilitate future securities issuance, pending shareholder approval, and an increase in the company’s authorized share capital from Rs. 5 crore to Rs. 15 crore.
Furthermore, the company has agreed to acquire 76% of Tritech Industrial Solutions Private Limited and 100% of Greenkashi Bio Energy Private Limited through a share swap via preferential allotments at Rs. 105 per share.
In addition, the company plans to issue 8,24,000 equity shares and 12,09,200 convertible warrants on a preferential basis. An Extraordinary General Meeting (EGM) is scheduled for February 19, 2025, to approve these transactions. These strategic steps are aimed at achieving inorganic growth and expanding into new business areas such as consultancy and bioenergy.
Business Operations
Greenhitech Ventures Limited specializes in the distribution of petroleum-based products such as biofuels, bitumen, and furnace oils. In addition, the company is responsible for the operation and maintenance of ethanol production at government-owned distilleries, ensuring compliance with bio-diesel blending regulations established in 2015 under government contracts.
Financial Highlights
The financial performance of Greenhitech Ventures Limited has shown significant growth, with revenue increasing from Rs. 2.04 crore in H1 FY24 to Rs. 11.11 crore in H1 FY25, representing a remarkable growth rate of 444.61 percent. Furthermore, the company has successfully transitioned from a net loss position to a net profit, with net profit increasing from Rs. -0.12 crore in H1 FY24 to Rs. 0.51 crore in H1 FY25.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.