The Business Bytes
Mumbai, October 10, 2024 (TBB Bureau): Mayukh Dealtrade Limited, a BSE-listed company engaged in the manufacturing of industrial burners, has announced plans to raise up to Rs. 49 crore through a rights issue of equity shares. The proposal, approved by the Board of Directors on August 30, 2024, is aimed at enhancing the company’s growth trajectory. The funds will be raised by offering shares to eligible shareholders, with the Managing Director and CFO authorized to appoint consultants and initiate the process.
In addition to the rights issue, the board has also approved a 5-for-1 stock split, whereby each equity share with a face value of Rs. 5 will be subdivided into five fully paid-up equity shares of Rs. 1, subject to approval from shareholders in the upcoming general meeting. This move is expected to make the company’s shares more affordable and accessible to a broader base of investors.
Further bolstering the company’s capital structure, the board approved an increase in authorized share capital from Rs. 30 crore to Rs. 63 crore by creating an additional 33 crore equity shares of Rs. 1 each. This, too, is pending shareholder approval at the general meeting.
The announcements come on the heels of Mayukh Dealtrade’s robust financial performance for the first quarter of FY25. The company reported a net profit of Rs. 33.77 lakh for Q1FY25, representing an impressive 327.46% increase compared to Rs. 7.90 lakh in the same period of the previous fiscal year. Income from operations grew by 18.57% to Rs. 69.59 lakh, compared to Rs. 58.69 lakh in Q1FY24.
Commenting on the company’s performance, Mit Brahmbhatt, Managing Director of Mayukh Dealtrade Ltd, said, “We are thrilled with our strong Q1FY25 results, which align with our expansion and growth strategy. Our team’s hard work and the trust of our stakeholders have been key to our success. We are committed to sustaining this growth momentum and further strengthening our market position.”
For the financial year 2024, the company reported a net profit of Rs. 1.19 crore, a 101% increase from the previous year’s profit of Rs. 59.23 lakh. Net sales for FY24 rose by 60.57% to Rs. 3.55 crore, compared to Rs. 2.21 crore in FY23, underscoring the company’s continued expansion.
Besides, the board discussed a potential name change for the company to “Sattva Sukun Lifecare Limited” or another approved name, pending shareholder approval at the upcoming AGM. This change reflects the company’s strategic evolution and diversification plans.
With the global electrical equipment market projected to grow at a compound annual growth rate (CAGR) of 7.1% from 2020 to 2025, reaching $1,662.7 billion, Mayukh Dealtrade is well-positioned to capitalize on the sector’s growth. The power generation, transmission, and control equipment segment remains a significant part of this market, while the batteries segment is expected to be the fastest-growing area, with a CAGR of 9.1% over the same period.
