Small-cap stock below ₹100: Ovata Capital, a Hong Kong-based investment manager, has acquired a stake in One Point One Solutions Ltd— a small-cap stock that has delivered multi-bagger returns to its long-term positional shareholders in year-to-date (YTD) time. The foreign institutional investor (FIIs) bought a stake in the company through a preferential issue offered by the company.
The small-cap company informed about the Hong-Kong-based FIIs’ investment in an exchange communication citing, “Allotment of 17,85,714 Equity Shares of the face value of Rs. 2 each upon conversion of warrants at an issue price of Rs. 56 each, upon receipt of the balance amount at the rate of Rs. 42 per warrant (being 75 per cent of the issue price per warrant) aggregating to Rs. 7,49,99,988.”
Established in 2017, Ovata Capital is a Hong-Kong based investment manager. With its flagship product, ‘Ovata Equity Strategies Master Fund’ focuses on Asian equities with four core strategy sleeves: Arbitrage, Relative Value, Event, and long/short. Significant investment synergies exist across the four core strategies, run as a team rather than separate pods on a platform. James Chen is the Founder and Chief Investment Officer of Ovata Capital.
In case of a preferential issue, One Point One Solutions Ltd said, “Pursuant to this allotment, the company’s paid-up share capital is increased to Rs. 51,44,57,178/- (25,72,28,589 equity shares of face value of Rs. 2 each fully paid up). This means I17,85,714 warrants of Rs. 56 each (including premium of Rs. 54 ) aggregating to Rs. 9,99,99,984 only.
The small-cap company also detailed the specifications of the allotted price. In the case of convertibles, the allotted price is 25 per cent of the issue price was payable at the time of allotment of warrants (i.e. Rs. 2,49,99,996 ) and 75 per cent of the issue price was payable at the time of conversion of warrants (i.e. Rs. 7,49,99,988 ). The warrants are converted within 18 months from the date of allotment.
One Point One Solutions Ltd