Small-cap stock under ₹50 surges 5% on ₹500 crore acquisition news

AVI Polymers Hits New High After Approving 90% Stake Acquisition in JVTR Consultants Private Limited

On 7 May, AVI Polymers, a penny stock, reached its 5% upper circuit limit in Thursday's trade, settling at ₹24.25 apiece and extending its winning run to the 16th straight session. The company's stock has been on a remarkable surge, driven by its approval of the acquisition of a 90% stake in JVTR Consultants Private Limited through a share swap arrangement at an indicative valuation of ₹500 crore.

Through this strategic move, AVI Polymers aims to strengthen its position in the fast-growing technology sector and expand beyond its traditional business operations. The company is focusing on areas such as information technology services, software development, system integration, digital platforms, and related technology solutions. This expansion is expected to create new growth opportunities and support the company's vision of building a diversified business portfolio.

According to the company, the proposed transaction is subject to completion of due diligence, finalization of transaction terms, and necessary approvals from shareholders and regulatory authorities. In line with this expansion strategy, the company has also approved the addition of new business activities in its Memorandum of Association related to digital and technology-focused business activities, subject to shareholder approval.

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As per the company's latest quarterly results, AVI Polymers reported revenue of ₹150.28 crore for the March quarter (Q4FY26), marking a 13.6% quarter-on-quarter jump from ₹132.32 crore. Net profit rose to ₹10.24 crore from ₹7.01 crore in Q3FY26, indicating growth of 46.1%.

AVI Polymers' stock has made a remarkable recovery, rebounding 128% from April lows after staging a strong recovery and recouping all of its earlier losses. 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 ₹24.25 apiece. The stock reached a new all-time high of ₹29.41 per share in March and had surged 176% in February, marking its biggest monthly gain since November 2025, when it had advanced 148%.