Aurionpro up 5% as board approves preferential issue to Malabar India Fund

Shares of Aurionpro Solutions were locked in the 5 per cent upper circuit at Rs 1,060.60, hitting a new high on the BSE on Tuesday at 12:13 PM after the company's board approved issue of equity shares and warrants to Malabar India Fund.

A combined around 61,000 equity shares changed hands and there were pending buy orders for about 75,000 shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.26 per cent at 63,005.

Aurionpro said the board of directors at its meeting held on today, June 20, 2023, approved issuance of 300,000 equity shares, having face value of Rs 10 each at a price of Rs 880 per equity share, aggregating to Rs 26.40 crore.

The board also approved allotment of 500,000 warrants, each carrying a right to subscribe to 1 equity share at an exercise price of Rs 880 per equity share aggregating to Rs 44 crore.

The board approved allotment of 255,000 equity shares and 425,000 warrants to Malabar India Fund and 45,000 equity shares and 75,000 warrants to Malabar Midcap Fund.

Malabar Investments is an India-focused boutique investment firm which concentrates on identifying and investing in small to mid-size companies who are leaders in their respective niches.

Aurionpro is an advanced technology solutions company catering to the needs of the Banking, Mobility, Payments, and Government sectors. In past two months, the stock price of Aurionpro has zoomed 212 per cent on strong business outlook. The management believes that the company is in a great position to continue its strong growth trajectory and expect FY24 growth to be in the range of 30-35 per cent.

With a strong order book of over Rs 820 crore, the management expects sustainable growth trajectory going forward. The company is a dominant player in the banking & fintech industry in Asia and one of the few integrated global players in the Automated Fare Collection (AFC) space.

In Q4FY23, the company’s consolidated revenue grew 39 per cent year-on-year (YoY) and 13 per cent quarter-on-quarter (QoQ) to Rs 191 crore. The company saw consolidated earnings before interest, taxes, depreciation and amortization (Ebitda) rise 33 per cent YoY to Rs 40 crore; Ebitda margin stood at 21 per cent, as against 22 per cent in Q4FY22. Profit after tax, too, increased 23 per cent YoY at Rs 27 crore.

Meanwhile, last month, Aurionpro Payment Solutions (AuroPro) received in-principle approval from the Reserve Bank of India (RBI) to operate as payment aggregator under the Payment and Settlement Act, 2007. AuroPay can commence payment aggregator business upon receiving the final certificate of authorisation from RBI. Aurionpro Payment Solutions is founded by Aurionpro Solutions which offers solutions in the fintech space.