Jai Corp, Zaggle, Kitex, CSL from BSE SmallCap freeze in lower circuits

Kitex Garments, Reliance Infra, GVK Power, PC Jeweller, Motisons Jewellers, Black Box, Borosil Renewables, Mercury EV-Tech and EKI Energy were also locked in their respective lower circuits

Shares of Jai Corp, Zaggle Prepaid Ocean Services, Cochin Shipyard, Kitex Garments and Reliance Infrastructure are among 13 stocks from the BSE Smallcap index locked in lower circuit after the index tanked nearly 3 per cent in Monday’s intra-day trade.

 

GVK Power & Infrastructure, PC Jeweller, Motisons Jewellers, Black Box, Borosil Renewables, Mercury EV-Tech, Oriental Rail Infrastructure and EKI Energy Services from the index also hit their maximum lower circuit. These stocks were locked in their lower circuits between the range of 2 per cent and 10 per cent, respectively.

 

At 01:44 PM, the BSE Smallcap index, the top loser among sectoral index, was down 2.8 per cent, as compared to the 2.2 per cent decline in the BSE Midcap and 1.5 per cent fall in the BSE Sensex.

 

 

Among the individual stocks, Jai Corp hit a fresh 52-week low, down 10 per cent at Rs 203.10 on the BSE. In one week, it has tanked 39 per cent after the company informed the stock exchange that Urban Infrastructure Holdings Pvt. Ltd. (UIHPL), a company in which it holds a 32 per cent stake, is convening an extraordinary general meeting of shareholders to approve capital reduction proposed by the company.

 

The proposed capital reduction is subject to approval by the shareholders of UIHPL, the National Company Law Tribunal (NCLT), apart from the other requisite regulatory approvals. Upon sanction of the capital reduction proposal, the company will receive approximately Rs 364 crore, the Anand Jain-promoted Jai Corp said in an exchange filing.

 

Jai Corp on Monday, January 1, 2025, in an exchange filing, said Dronagiri Infrastructure Private Limited (DIPL), a subsidiary of UIHPL, has recently sold its 74 per cent equity stake in Navi Mumbai IIA Private Limited (NMIIA) for a consideration of Rs 1,628.03 crore.

 

Reliance Industries on December 13, 2024 had announced the acquisition of a 74 per cent equity stake in NMIIA for Rs 1,628.03 crore.

 

That apart, shares of Zaggle Prepaid Ocean Services hit the lower circuit of 5 per cent at Rs 534.20 on the BSE. In the past seven months, the stock price of the fintech company had zoomed 124 per cent. It had hit a record high of Rs 597 on December 17, 2024.

 

Zaggle, in partnership with its banking partners, is one of the largest issuers of prepaid cards in India. Additionally, Zaggle has a diversified portfolio of SaaS products, including tax and payroll software, and a wide touchpoint reach. It is a leading player in spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 3.03 million users served as of September 30, 2024, offering a differentiated value proposition and a diversified user base.

 

Separately, Kitex Garments was locked in a lower circuit of 5 per cent at Rs 658.80 on the BSE. The stock of the garments and apparels company has declined 23 per cent from its multi-year high of Rs 900 that it hit on December 16, 2024. It had skyrocketed 409 per cent from the level of Rs 176.80 that it touched on June 4, 2024.

 

The company has longstanding relationships with large reputed international retailers such as William Carter, Gerber, and The Children's Place, leading to repeat orders from these clients. Furthermore, the group has added three new major buyers from the US in FY25, providing  revenue visibility.

 

India Ratings and Research (Ind-Ra) expects the company's earnings before interest, tax, depreciation and amortisation (Ebitda) margin to improve in FY25 on account of a recovery in the textile industry; however, the company's margin is likely to moderate during FY26 and FY27 due to higher fixed overheads on account of the initial stages of operations at Kitex Apparel Parks Limited (KAPL). The first phase of the project is likely to become operational by April 2025 and the second phase by April 2026.

 

The group’s sales to the US-based customers accounted for about 92 per cent of the total sales in FY24 (FY23: around 93 per cent), indicating high geographical concentration. However, considering the US is one of the largest importers of apparels and the nature of the industry, the Kitex group’s concentration is likely to sustain, Ind-Ra said in rating rationale dated October 2024.