Penny stock below ₹2 hits upper circuit after THIS business update

Mint

12-05-2025

Shares of penny stock Murae Organisor hit its upper circuit on Monday, May 12, hitting the upper circuit in intra-day trade after the company's board approved a major expansion plan involving land acquisition and investment of up to ₹ 250 million. The strategic move is aimed at boosting its agricultural and industrial footprint, with a focus on high-value pomegranate cultivation and establishing a distillery unit in Gujarat.
In an exchange filing, the company stated that its board has approved a proposal—subject to satisfactory due diligence, regulatory approvals, and statutory clearances—to explore the acquisition of agricultural land in Kutch, Gujarat. The move is part of a larger initiative to diversify and strengthen its revenue streams by tapping into agribusiness and value-added industrial products.
The land is proposed to be used for the cultivation of premium-quality pomegranates, leveraging the region's favorable agro-climatic conditions. Alongside this agricultural initiative, Murae Organisor plans to set up a distillery facility on the site to improve operational efficiency and expand into new business segments.
The company noted that the estimated investment for this initiative is between ₹ 200 million and ₹ 250 million. However, the final investment figure will be determined after a detailed due diligence process, feasibility reports, and securing of all required statutory and governmental approvals.
Murae Organisor emphasized that the proposed project aligns with several government schemes such as the "National Horticulture Mission," "Pradhan Mantri Krishi Sinchai Yojana (PMKSY)," and the "Gujarat Industrial Policy 2020." These policies support agricultural and industrial development through subsidies, tax benefits, and infrastructural assistance. The company believes that its new initiative could benefit from these frameworks, enabling long-term growth.
The penny stock rose 4.65 percent, its upper circuit of ₹ 1.35, though it remains over 50 percent below its 52-week high of ₹ 2.73, touched in November 2024.
On a broader timeline, the stock has shed 11 percent over the past one year. In May so far, the scrip has declined 5.5 percent after recording a 3.6 percent gain in April. Prior to that, the stock was in negative territory for four consecutive months—falling 18 percent in March, 19 percent in February, 0.5 percent in January, and 11.6 percent in December 2024.