Small-cap Stock Under ₹50 Hits Upper Circuit for 13th Consecutive Session, Announces ₹500 Crore Fundraising Plan

AVI Polymers Extends Winning Streak to 13 Sessions

AVI Polymers, a penny stock, hit its 5% upper circuit limit in Monday's trade, settling at ₹20.95 apiece and extending its winning run to the 13th straight session. The company's Board of Directors will meet on Thursday, May 7, to consider key strategic proposals, including a potential fundraise of approximately ₹500 crore.

The Board will evaluate various capital-raising options such as a Qualified Institutional Placement (QIP), a preferential issue, a private placement, or a combination of other permissible routes, subject to the necessary regulatory and shareholder approvals. The proposed transaction, being assessed at an indicative valuation of around ₹500 crore, is subject to due diligence and execution of definitive agreements.

In addition to the potential fundraise, the Board will consider a proposal to expand the object clause of the company's Memorandum of Association to include information technology, software development, system integration, digital platforms, and allied technology services. This step is intended to support diversification and align the business with emerging technology-driven opportunities.

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AVI Polymers reported impressive growth in the March quarter, with revenue rising 13.6% quarter-on-quarter from ₹132.32 crore to ₹150.28 crore, while net profit soared 46.1% to ₹10.24 crore from ₹7.01 crore in Q3FY26. For the full year, the company reported revenue of ₹312.11 crore, a significant jump from ₹0.06 crore in FY25, while net profit came in at ₹20.33 crore.

The company exited FY26 in the strongest financial position in its history, with net worth surging to ₹115.99 crore from ₹5.67 crore a year ago, marking a 20.5-fold expansion. Its cash and cash equivalents stood at ₹16.60 crore, while borrowings remained negligible, reflecting a virtually unlevered balance sheet.

AVI Polymers' long-term growth story is anchored in a rapidly expanding digital ecosystem being built through its wholly owned subsidiaries. The company's two platforms, KrishiBuddy and VI Health AI, are expected to serve as the foundation for its technology-led diversification strategy.

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After staging a strong recovery, the shares recovered from the sharp volatility witnessed in early April, when the stock had crashed to ₹10.61 apiece. From the month's low, the stock has rebounded 64% to Monday's close of ₹20.95 apiece. The stock reached a new all-time high of ₹29.41 per share in March, following a 176% surge in February, its biggest monthly gain since November 2025.