Infra stock under ₹15 hits upper circuit after signing agreement to issue ₹50 Cr worth of shares

An infra stock hits a 2 percent upper circuit following the announcement of a Share Subscription Agreement with Systematic Conscom Limited. The agreement involves the issuance of a substantial number of equity shares, boosting investor confidence and driving the stock’s upward momentum.

Share Price Movement 

During Tuesday’s trading session, Consolidated Construction Consortium Ltd‘s share price hit an intraday high of Rs.202.00 apiece, hitting a 2 percent upper circuit from the previous close of Rs.13.26 apiece. 

What Happened

Consolidated Construction Consortium Limited has entered into a Share Subscription Agreement dated March 24, 2025, with Systematic Conscom Limited for the issuance and allotment of 2,85,71,436 equity shares. The total equity shares will be issued at Rs. 17.50 each, with an aggregate value of Rs.50,00,00,130. 

This issuance is subject to the fulfillment of customary conditions, including shareholder approval and ‘in-principle’ listing approval from the stock exchanges. The agreement grants certain special rights, such as the right to appoint directors and the first right to share subscriptions in case of further share issuance. The parties involved are not related to the promoter group, and the transaction is not considered a related-party transaction.

Also read: Penny stock skyrockets 15% after receiving ₹64 Cr order for construction project

Business Operations 

Consolidated Construction Consortium Ltd. (CCCL) offers integrated turn-key construction solutions, encompassing construction design, engineering, procurement, and project management to ensure seamless project execution. In addition, the company provides allied services, including mechanical, electrical, plumbing, fire-fighting, HVAC, interior fit-outs, and glazing solutions. 

CCCL has completed over 334 projects across 17 states and union territories in India, with a diverse portfolio spanning industrial (factories), commercial (offices and malls), infrastructure (bridges and water supply schemes), and residential (apartments and villas) sectors.

Financial Overview

According to its recent financial updates, Consolidated Construction Consortium Ltd reported consolidated revenue of Rs.52 crores in Q3 FY25, marking an 18 percent increase from Rs.44 crores in Q3 FY24. Similarly, the net loss of the company reduced to Rs.12 crores, from Rs.618 crores in the same period last year. 

Ratio Analysis

The company has a current ratio of 0.71, indicating liquidity concerns, a debt-to-equity ratio of 2.05, highlighting a high reliance on debt, and an EV to Sales ratio of Rs.4.04, suggesting that its enterprise value is over four times its sales.

Written by – Siddesh S Raskar

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