Stock hits 5% upper circuit after promoter increases stake and announces new subsidiary

The shares of a Microcap Finance and Investment company that is mainly involved in trading in the Stock market, Providing loan and Leasing hit a 5% upper circuit as a result of promoter increasing stake and incorporation of a wholly owned subsidiary. 

Promoters usually increase their stake in a company to demonstrate their confidence in the company’s future growth potential, signifying a strong belief in the business’s long-term prospects.

Share Price Movement 

The shares of Sera Investments & Finance India Ltd, with a total market capitalization of Rs 199.36 Crores on Thursday, reached an Intra day high of Rs 30.67 per share hitting a 5 percent upper circuit in today’s trade.  

The shares of Sera Investments & Finance India Ltd generated a return of 55 percent in the past one year, and an impressive return of 279 percent in the last three years. 

What Happened

On February 25, 2025, Sera Investments & Finance India Ltd announced that Mr. Sagar Samir Shah, promoter of the company, had purchased 17,000 equity shares from the open market. This increased the promoter’s stake in the company from 3.5 percent to 3.53 percent, with the acquisition taking place on February 24, 2025.

Further as per a press release dated February 27, 2025, the company  has announced the incorporation of its wholly owned subsidiary, “Sera Capital Services Private Limited”, which was approved by the Ministry of Corporate Affairs on February 25, 2025. This new subsidiary, based in Gujarat, is established with an authorized and paid-up capital of Rs 10 Lakhs each. 

The newly formed subsidiary will act as the Investment Manager and Sponsor for an Alternative Investment Fund (AIF) and it is still in its early stages and has not yet started business operations.

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Promoters’ stake increase in February

The promoter, Mr. Sagar Samir Shah had bought 4,900 shares of the company on February 11, 2025, and purchased an additional 20,100 shares the next day.The promoter currently holds 22,92,000 shares of Sera Investments & Finance India Ltd which equates to 3.53% stake.

Financials

The company reported a 95 percent YoY decline in Revenue from Operations from Rs 9.13 Crores in Q3FY24 to Rs 0.5 Crores in Q3FY25. It posted a Net Loss of 5.28 Crores in Q3FY25 as against a Net Profit of Rs 7.41 Crores in the previous year. 

About Sera Investments & Finance India Ltd

Sera Investments & Finance India Ltd is a non-banking finance company that is primarily engaged in investment activities. Its services include Personal and MSME loans, Loans against securities, Capital advisory, Lending, and Other services online.

Written By Adhvaitha Nayani

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