Penny Stocks Under ₹5 to Dominate Market Focus on Monday
Nandan Denim Share Price in Focus After Acquisition Announcement
Nandan Denim's share price will remain under the spotlight in Monday's trading session following the company's announcement of acquiring a stake in Opera Vayu (Narmada) Private Limited. The penny stock ended the previous session around 3% higher, closing at ₹2.71 apiece.
The acquisition details were revealed in an exchange filing on Friday, where Nandan Denim's board approved the purchase of a 6.1% equity stake in Opera Vayu (Narmada) Private Limited, a special purpose vehicle established for renewable energy generation. The company will invest ₹4,00,20,960 to purchase 40,02,096 equity shares with a face value of ₹10 each, under the captive power route. As a user member, Nandan Denim will participate in the acquisition and will furnish an irrevocable bank guarantee of ₹1.90 crore to cover three months of power billing.
The transaction will be executed in cash and does not fall under the related party category. Nandan Denim has been exploring the possibility of increasing the sourcing of renewable power to reduce the cost of power at its Bareja Plant. The company will procure 4.3 MW Power out of 23.1 MW (Wind & 25 MW DC Solar) of Group Captive Renewable Energy Power Plant.
The acquisition will enable Nandan Denim to obtain Wind & Solar Power from the special purpose vehicle at a highly competitive market rate for a period of 25 years.
| Metric | Nandan Denim | Comparison |
|---|---|---|
| 1-Week Return | 4.63% | - |
| 1-Month Return | 20.00% | - |
| 1-Year Return | -33.42% | - |
| YTD Return | -7.51% | - |
| 3-Year Return | 24.31% | - |
| 5-Year Return | -12.30% | - |
Nandan Denim's share price has remained volatile in the near term amid weak market sentiments. Despite the recent gains, the stock has shed 33.42% in the last one year and 7.51% in year-to-date (YTD) basis. Zooming out further, the penny stock has delivered 24.31% returns in the last three years, but has fallen 12.30% in five years.
Investor Takeaway
Investors should keep an eye on Nandan Denim's stock price as it may be influenced by the acquisition of a stake in Opera Vayu (Narmada) Private Limited.
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