Shares of Refex Industries surged by over 4% during intraday trade on Friday after the company announced a significant fundraising plan. The stock climbed as high as ₹564 per share on the Bombay Stock Exchange (BSE), marking a 4.59% increase. The positive movement in the stock follows the company’s announcement to raise ₹927.81 crore through a preferential issue of equity shares and convertible warrants to investors.
This significant development has drawn the attention of both investors and market analysts, contributing to the recent uptick in the company’s stock price.
Fundraising details and allocation
Refex Industries disclosed that the raised funds would be sourced from two main categories: ₹530 crores from high-net-worth individuals and ₹372 crores from the promoter group. These funds are earmarked for a variety of purposes, including subsidiary investments, capital expenditures, working capital, and loan repayments. The company aims to deploy the capital strategically to strengthen its position in multiple sectors, which include ash handling, electric vehicle (EV) mobility, and more.
Dinesh Kumar Agarwal, Group CEO of Refex, will personally invest ₹26 crore as part of the preferential issue, underscoring the leadership’s commitment to the company's future growth and sustainability initiatives.
For investors looking to diversify their portfolio, this might be a positive indicator to buy shares online. Refex’s ability to raise such substantial funds demonstrates confidence from both high-net-worth individuals and internal stakeholders, reinforcing its credibility in the market.
Leadership’s vision and focus on sustainability
In a press statement, Anil Jain, Managing Director of Refex Industries, emphasised the company’s commitment to environmental, social, and governance (ESG) principles. “Our focus on sustainability drives our efforts in both ash handling logistics and EV mobility,” said Jain. He further added that this fundraising initiative would allow the company to develop innovative solutions while staying aligned with its long-term sustainability goals. The confidence from both investors and leadership, according to Jain, is a testament to their mission of creating a cleaner, greener future.
Stock performance and market comparison
Refex Industries has shown remarkable performance over the past year, with its stock price increasing by 165.40% in the last three months and an impressive 335% over the last year. This surge significantly outpaces the BSE Sensex, which has risen by only 3% in the past three months and 36.3% in a year.
Currently, Refex Industries boasts a market capitalisation of ₹6,633.05 crore. Its shares are trading at a price-to-earnings (P/E) ratio of 56.64 times, with an earnings per share (EPS) of ₹9.52. At 10:13 AM on Friday, the stock was trading at ₹549.50 per share, up 1.90% compared to the previous close. In contrast, the BSE Sensex was largely flat, gaining just 0.01% to reach 82,506 points.
Q1FY25 financial performance
Refex Industries delivered a strong financial performance in Q1FY25, reporting a 55.44% increase in revenue year-on-year, reaching ₹597.21 crores. The company also saw a robust 70.47% quarterly growth. However, despite the revenue growth, net profits experienced a 12.37% quarterly decline, although they still rose by 41.18% year-on-year to ₹30.03 crore.
Refex continues to operate in multiple sectors, including logistics for ash and coal handling, EV mobility, refrigerant gases, and power trading. This diverse portfolio, coupled with its commitment to sustainability, positions the company well for future growth.
For those seeking investment opportunities, Refex Industries’ recent performance may serve as a signal to buy shares online, given its strong financial growth and future potential.
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