Geojit Financial to Finalize ₹200 Crore Rights Issue Details on 19 Sept

Geojit Financial's Rights Issue Committee is set to convene on September 19, 2024, to finalize important details of its forthcoming rights issue. The meeting will focus on determining key factors, including the issue price, the rights entitlement ratio, and other related aspects.

This follows the Board of Directors' decision on July 13, 2024, to approve the offering of equity shares via a rights issue to eligible shareholders. The total amount to be raised through this issue will not exceed ₹200 crore, with the record date for determining eligible shareholders yet to be decided. The process will comply with SEBI guidelines and relevant laws.

As of 9:18 am IST, Geojit Financial shares rose by 3.7% to ₹175.39 on the NSE during the previous trading session. The stock has surged by 118% year-to-date, significantly outperforming the Nifty index's 14% gain.

Over the past 12 months, this multibagger from the Jhunjhunwala portfolio has soared 230%, more than tripling investors' returns. In comparison, the Nifty index rose 28% over the same period.

Investor Rekha Jhunjhunwala held 17.21 million shares, representing a 7.2% stake in Geojit Financial Services, as of the end of the June 2024 quarter. Other notable shareholders include BNP Paribas, C J George (Founder and Managing Director of Geojit), and the Kerala State Industrial Development Corporation (KSIDC).

Geojit Financial Services operates in the retail and institutional broking space and distributes financial products. In Q1FY25, the company reported a 107% year-on-year (YoY) increase in net profit, totaling ₹45.81 crore.

Meanwhile, consolidated revenue for the company grew 56% YoY to ₹181.18 crore. As of June 30, 2024, Geojit Financial’s assets under custody and management (AUM) reached ₹1.03 lakh crore, and the firm served over 1.41 million clients.

The stock has been notably volatile today, with an intraday volatility of 36.48%. However, it managed to hit an intraday high of ₹177, marking a 3.51% increase from its previous close. Geojit Financial shares are currently trading above their 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a positive trend.

In the past year, the company has demonstrated outstanding performance, achieving a 231.35% increase, whereas the Sensex only grew by 22.19%. This highlights the company's strong growth trajectory and its ability to outperform broader market indices.

Despite being a smallcap stock, Geojit Financial's performance in the finance/NBFC sector has been exceptional. With its recent all-time high share price and consistent growth, it remains a stock worth monitoring. However, it is important to note that this article is based solely on factual information and does not provide any investment recommendations. Investors are advised to conduct their own research before making any investment decisions.