Penny stock below ₹2: Small-cap stock Teamo Productions HQ hits upper circuit; here’s why

Penny stock Teamo Productions HQ jumped 5 per cent to hit its upper circuit in intraday trade on the BSE on Wednesday, September 11, a day after the company announced the conversion of warrants into equities worth ₹9 crore. Shares of Teamo Productions HQ opened at ₹1.45 against its previous close of ₹1.44 and touched its 5 per cent upper circuit of ₹1.51. Around 11:30 am, the stock traded 2.78 per cent up at ₹1.48.

In an exchange filing post-market hour on Tuesday, September 10, the company said its board of directors, in their meeting held on Tuesday, approved the allotment of 8,00,00,000 equity shares with a face value of ₹1 each at an issue price of ₹1.50 per share.

This allotment follows the conversion of 80,00,000 warrants originally issued at an issue price of ₹15 each. After the sub-division of equity shares from one share of ₹10 each to 10 shares of ₹1 each, the paid-up capital per share and premium per share were adjusted accordingly.

The shares have been allotted to individuals in the “non-promoters/public category” on a preferential basis. The total amount received from the allottees is ₹9 crore, at the rate of ₹11.25 per warrant.

Mohaan Nadaar and Mariango Trading Private Limited are the two allottees of the shares. After the conversion of the warrant, both were allotted 4 crore shares each.

Teamo Productions HQ share price trend

Teamo Productions share price has seen a decent gain over the last one year, rising about 36 per cent. On a monthly scale, the stock is down about 8 per cent this month, following a 3 per cent fall in August, according to Investing.com data.

The small-cap stock hit its 52-week high of ₹1.87 on July 12 this year. It hit a 52-week low of ₹1 on November 13 last year.

If the stock ends in the green today, it will snap its three-day losing run.

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