Multibagger stock hits 20% upper circuit as Tata Healthcare Fund buys 10.8% stake

economictimes.indiatimes.com:

Sakar Healthcare hit a 20% upper circuit at Rs 324.6 in Friday's trade on BSE as the Tata Healthcare Fund bought a 10.8% stake in the company. Sakar Healthcare informed stock exchanges of the company’s decision to raise nearly Rs 60 crore via allotment of over 23,09,910 equity shares at an issue price of Rs 259.75 per equity share on a preferential basis (Private Placement). Most of the funds via this fundraising would be used to reduce debt and for the acquisition of land and building.

Under the preferential allotment, shares will be allotted to Tata Capital Healthcare Fund which post the preferential issue of equity shares own a 10.82% stake in the company. Stating about the Tata Healthcare fund buying a stake in Sakar Healthcare, the company said, «The Board has approved the execution of a share subscription agreement dated August 3, 2023, between the Company, Tata Capital Healthcare Fund II (acting through its trustee Tata Trustee Company Private Limited) and the promoters listed in Annexure B (SSA) pursuant to which, the Company has agreed to issue 23,09,910 Equity shares as part of the Preferential Issue, subject inter alia to fulfillment of the conditions precedent set out in the SSA.» Sakar Healthcare has delivered multibagger returns to investors. The stock has rallied nearly 500% in the last three years.

Meanwhile, it has gained about 40% in the last six months, whereas in the last few years, the stock has gained about 65%. Technically, the day RSI (14) is at 61. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed.