Multibagger stock hits upper circuit on fundraising plans

Shares of Paramount Communications Ltd on Tuesday hit an upper circuit after the company announced that it will issue shares to select investors on a preferential basis. The small-cap company informed bourses about the development through an exchange filing.

"The company board met on Monday, December 18 to consider and approve up to 2,25,24,980 equity shares of the company of face value Rs 2 each at a price of Rs 66.50 apiece the given investors/entities who does not belong to the promoter and promoter Group of the company," said the company said in its exchange filing.

The shares of Paramount Communications were locked in a 5 per cent upper circuit and were trading at Rs 86.75, near to its 52-week high of Rs 86.80 crore. With this, the company now commands a total market capitalization of Rs 2,124.81 crore. In the last trading session, the scrip had settled at Rs 82.62. 

Paramount Communications shares are one of the multibagger stocks that Indian stock market has produced in 2023. So far this year, it has given a positive return of around 137.35 per cent. 

The company said the Board also approved "To issue and allot, subject to the approval of the shareholders of the Company, a maximum of upto 2,25,24,980 equity shares of the Company of face value Rs. 2/- each at a price of Rs. 66.50/-."