Penny Stock Surges Amid Rights Issue, Doubling Shareholder Returns in One Month

Penny Stock Gujarat Cotex Sees 100% Surge in Share Price

Gujarat Cotex, a diversified enterprise operating across textiles, real estate, hospitality, and agro-commodity trading, has seen its share price soar over 100% in the last 1 month. The company announced plans to raise ₹42.73 crore through a rights issue, which opened on April 10, 2026, and will close on May 8, 2026. The offer is structured in a 6:1 entitlement ratio, allowing shareholders to subscribe to six rights shares for every one share held. The company plans to issue over 8.54 crore equity shares to raise the targeted amount.

The rights issue offers shares at ₹5 apiece, a steep discount to the market price of ₹11.2 as of April 24. This move is expected to support the company's expansion across its diversified business segments. Gujarat Cotex stock has been gaining in recent times, advancing 35% in the past 3 months and 42% in the last 6 months. However, in the past 1 year, the scrip has lost 6%.

The penny stock, with a market capitalisation of ₹112 crore, has hit its 52-week high of ₹11.60 on April 20, 2026, and its 52-week low of ₹4.26 in October 2025. Just today, the multibagger stock rose 1% to its day's high of ₹11.29 per share on BSE.

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Rights Issue Details

The proceeds from the rights issue are earmarked for multiple growth initiatives. Gujarat Cotex plans to allocate ₹9.60 crore toward completing its upcoming premium hotel project near Sarangpur Hanuman Mandir, which will feature 55 rooms and 10 dormitories. Another ₹19.30 crore will be used to meet working capital requirements across its diversified operations, while ₹2.13 crore is set aside for acquiring a new registered office. The remaining ₹10.68 crore will be deployed for general corporate purposes.

The company's financial performance has remained strong, with revenue of ₹29.86 crore for the nine months ended FY26, marking a 54.7% year-on-year growth. Net profit rose 79.7% YoY to ₹82.6 lakh during the same period, indicating improving operational momentum.

Financial Performance

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Founded as a textile manufacturing company, Gujarat Cotex has steadily diversified its business over the years. It transitioned into fabric trading, expanded into real estate, and is now entering the hospitality segment, alongside a recent foray into agro-commodity trading. The company's multi-segment strategy reflects its focus on scaling operations and tapping new growth opportunities across sectors.