Gujarat Toolroom Limited hits 5% upper circuit on Reliance order

Gujarat Toolroom Limited, a Gujarat-based penny stock, reached the 5% upper circuit on November 25 after announcing the successful execution of an order worth ₹31 crore for Reliance Industries. This marks a significant milestone in its partnership with Reliance, bringing the total completed orders for the current financial year to ₹60 crore.

In an exchange filing, the company expressed pride in delivering high-quality projects within tight deadlines, underscoring its commitment to excellence. With its share price up 4.99% at ₹13.26 apiece on BSE at 11:58 AM, Gujarat Toolroom has a market capitalisation of ₹212.35 crore. Reliance Industries also saw a positive trend, with its share price rising 2.49% to ₹1,297.50 at 12:14 PM.

This surge in Gujarat Toolroom’s stock is a testament to its growing reputation in the industry and could attract more attention from those looking at share market investment opportunities.

Fundraising and future growth potential

In October, Gujarat Toolroom raised ₹50 crore through a Qualified Institutional Placement (QIP) at an issue price of ₹11.50 per share. The QIP attracted major institutional investors such as Zeta Global Funds and Eminence Global Fund PCC Trade Fund. Each fund acquired 2,17,39,130 shares, collectively accounting for 50% of the allotment.

The proceeds from this QIP are expected to fuel the company’s growth initiatives and operational expansion, making it a compelling prospect for share market investment. Gujarat Toolroom’s leadership has expressed optimism about securing additional orders from Reliance Industries, which could further enhance revenue and profitability.

Dividend declaration and market appeal

Gujarat Toolroom also declared a 100% dividend for the last quarter, reflecting its strong cash flow and commitment to delivering shareholder value. This move has strengthened investor confidence, positioning the company as a reliable choice for those exploring the share market investment landscape.

Key takeaways

• Gujarat Toolroom achieved a 5% upper circuit after executing a ₹31 crore order for Reliance Industries.
• The company raised ₹50 crore via QIP, with strong backing from institutional investors.
• Gujarat Toolroom declared a 100% dividend, highlighting its consistent financial performance and appealing to share market investors.