Smallcap railway stock soars 700% in 10 Months; New orders secured, and promoters raise Rs 212 crore through preferential allotment

The shares of this small-cap company, which manufactures seats and berths for Indian Railways, have created a stir in the stock market and have shown a rise of more than 700 percent in ten months and around 500 percent in a year.

The name of the stock is Oriental Rail Infrastructure Limited (BSE: 531859) and running like a bullet train for the last 12 months. Today when we are writing this article, it is trading at Rs 294.00 in BSE with a gain of 2.83%. Its 52-week high price is 302.40 and its 52-week low price is 33.50. It has seen an increase of 5% in the last five days, 20% in one month, and 345% in six months.

You can check details related to stock performance, returns, fundraising, and order details below.

New Order Received from Integral Coach Factory

Oriental Rail Infrastructure Limited (ORIL) has recently received an order valued at Rs. 12,79,86,280.91/-. The order comes from the ‘Integral Coach Factory (ICF), Chennai, Indian Railways’ and involves manufacturing and supplying 208 sets of ‘Seat and Berths’ for LWACCN coaches.

The company is set to complete the order by December 24, 2024. The payment structure is such that 90% of payment will be received on the inspection certificate from the nominated agency and the remaining 10% will be received after inspection and acceptance of goods.

Company Raised Rs 212 Crores Through a Preferential Allotment

In a strategic move, Oriental Rail Infrastructure Ltd (ORIL) recently issued 75 million warrants to promoters at a discounted rate of Rs 169 per share. These warrants give the promoters the exclusive right to purchase new shares at the same price within the next 18 months.

This discounted option not only provides leverage to the promoters but also opens up potential profit avenues, especially if the market experiences an appreciation in value. Notably, promoters are required to pay only 25 percent upfront, providing them with a cost-effective means of acquiring a significant stake in the company.

Simultaneously, Oriental Rail Infrastructure Limited increased its preferential allotment to non-promoters, issuing 50.56 million equity shares at the same price. Notable recipients include respected investor Mukul Agarwal.

This strategic move not only allows elite investors to acquire shares at a discounted rate compared to current market prices but also serves as an attractive proposition to potential strategic partners. The preferential allotment to non-promoters is designed to diversify ownership and enhance the market position of the company.

This dual approach, in line with regulatory standards, aims to foster a symbiotic relationship between key stakeholders, promoting sustainable growth. The addition of Mukul Aggarwal has added credibility, positioning ORIL as an attractive investment opportunity.

Lastly, this micro capital restructuring reflects the company’s commitment to empowering promoters and attracting strategic partnerships, strengthening its position as a visionary, growth-oriented entity in the industry.

Oriental Rail Infrastructure Shares Performance & Return

Shares of Oriental Rail Infrastructure were listed on BSE in Dec 2004 and since its listing, it has delivered marvelous returns. This stock has given a 130 percent return in three months and more than 300% within six months. You can check the tables below to know the performance in detail.

Oriental Rail Infrastructure Shares Soar 700% in 10 Months

Oriental Rail Infrastructure shares Zoom 346 percent in six months, and 631.39 percent in nine months. The company’s overall performance over the last 10 months is 719.30% and for investors who invested ₹10,000 in it 10 months ago, its value has grown to ₹81,930 today.

Oriental Rail Infrastructure Shares Performance in 2023

The share price of Oriental Rail Infrastructure in January 2023 was ₹76.35, and on the last trading day of the year, it closed at ₹231.75 with a gain of 203.54%.

Oriental Rail Infrastructure Share Performance since Listing (Compounding)

In the table below, you can check the company’s absolute returns and CAGR growth from listing. You can also check that if someone has invested a lump sum of Rs 10,000, then what is the value of those shares today…

• If we look at the performance of the last 12 months, it has seen a rise of more than 450 percent.
• In the last ten years, it has increased investors’ money by more than 45 times.
• For investors who had invested Rs 10,000 in Oriental Rail Infrastructure Shares on listing day, the value of those ₹10 thousand shares has increased to ₹2.1 crore.
• The company’s last five-year stock CAGR growth is 43.63% and its last ten years CAGR growth is 46.38%.

Oriental Rail Infrastructure Share Performance since Listing (Year-wise)

About the Company

Oriental Rail Infrastructure Limited has established itself as a significant contributor to the Indian Railways and various industries. It enjoys more than 30% market share in seats and berths in Indian Railways.

It specializes in the production and supply of a wide variety of products, including Seats and Berths, Densified Thermal Bonded Block (DTBB), Compreg Board and allied products, Orwin, Recorn, Coated Upholstery Fabrics, Furniture and Parts, Plywood, and Phenolic Resin & hardener.

Disclaimer: This article is for informational purposes only and should not be considered investment advice.