Synopsis: Hitech Corporation Limited hit a 20% upper circuit after its promoter, Geetanjali Trading & Investments Pvt Ltd, announced plans to delist the company via SEBI’s reverse book building process. The promoters hold 74.43% stake and proposed ₹353 or higher per share.
The shares of the Micro-cap stock specialising in the design, development, and manufacturing of rigid plastic packaging have been in the spotlight in today’s trade as they have rallied 20 percent following the Delisting Buzz.
With a market capitalization of Rs. 343.79 crores on the day’s trade, the shares of Hitech Corporation Limited hit a 20 percent upper circuit, making a high of Rs. 200.16 per share compared to its previous closing price of Rs. 166.80 per share.
What Happened
Hitech Corporation Limited, engaged in the design, development, and manufacturing of rigid plastic packaging, has received an Initial Public Announcement from promoter group entity Geetanjali Trading and Investments Private Limited expressing its intention to voluntarily delist the company’s equity shares from both BSE Limited and National Stock Exchange of India Limited.
The delisting proposal aims to acquire all shares held by public shareholders through the SEBI-prescribed reverse book building process. The promoter group currently holds about 74.43% stake in the company. The proposed indicative delisting price is Rs. 353 per share or the floor price, whichever is higher, with a premium of over 110 percent.
The rationale provided for the delisting includes low free float, limited liquidity, and relatively small market capitalisation, which reportedly do not offer meaningful trading benefits for public shareholders. The company also stated that delisting would help reduce compliance costs and allow shareholders an opportunity to exit at a potentially fair valuation.
The delisting process remains subject to approvals from the company’s board, public shareholders, stock exchanges, and regulatory authorities. Public shareholders will get an exit opportunity at a price determined through a transparent bidding mechanism, and the promoters have confirmed adequate financial arrangements to complete the offer if approved.
Financials & Others
The company’s revenue rose by 11.19 percent from Rs. 149.29 crores in March 2025 to Rs. 166.00 crores in March 2026. Meanwhile, Net profit rose from Rs. 1.01 crores to Rs. 8.89 crores in the same period.
The company is currently showing a decent return profile, with a ROCE of 10.1% and a relatively modest ROE of 5.98%, indicating that capital is being deployed at a moderate efficiency level. These figures suggest stable but not high-growth profitability at present.
On the balance sheet side, the debt-to-equity ratio of 0.47 reflects manageable leverage, while the stock trading at 1.03 times its book value indicates it is priced close to its underlying asset value, suggesting limited premium valuation in the market.
Hitech Corporation Limited is an Indian manufacturing company primarily engaged in rigid plastic packaging solutions. Established in 1991 and headquartered in Mumbai, the company was earlier known as Hitech Plast Limited before being rebranded in 2017. It is part of the Hitech Group and serves a wide range of industries, including paints, lubricants, agrochemicals, pharmaceuticals, personal care, home care, and food & beverages.
The company designs and manufactures products such as plastic bottles, containers, jars, drums, caps, and closures. It operates multiple manufacturing facilities across India and focuses on customized packaging solutions from design and prototyping to full-scale production. Its business model centers on providing end-to-end packaging support to industrial and consumer product companies.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post 20% Upper Circuit: Stock Surges After Co. Announces Buyback at 110% Premium Amid Delisting Plans appeared first on Trade Brains.