No Sellers, Only Buyers! Stock Below Rs 1 Locked In Upper Circuit On Rs 2 FII Deal For 24% Stake Proposal

In light of the company's disclosure of a strategic, non-binding Letter of Intent from Hong Kong-based Luminary Crown Limited to acquire up to 24% equity stake at Rs 2 per share, Auri Grow India Limited shares attracted significant market attention after locking in the upper circuit below Rs 1 on Wednesday's trading session.

The NSE has been notified by Auri Grow India Limited (formerly Godha Cabcon & Insulation Limited) that its Board of Directors will convene on December 26, 2025, to discuss a strategic, non-binding Letter of Intent (LoI) that the Hong Kong-based Luminary Crown Limited issued regarding a potential investment and business partnership.

Subject to regulatory clearances, the proposal includes an indicative plan to acquire up to a 24% stake in the firm on a fully diluted basis at a price of Rs 2 per equity share, ideally through a primary issue via preferential allotment.

Along with strategic initiatives like expansion into rice aggregation, processing, and exports targeted at GCC and European markets, utilizing India's export strengths, the LoI additionally discusses minority investor rights, such as the nomination of one director to the board without seeking management control.

The proposal also includes organic farming operations on the company's land bank for at least five years, as well as the establishment of a hydroponics and aeroponics farming project with an estimated cost of Rs 55 crore, potential annual revenues of Rs 180-200 crore, and indicative net margins of about 13%.

Despite the company's clarification that the LoI remains non-binding and subject to approvals, market participants keep an eye on the December 26 board meeting, where the proposal will be evaluated, with no sellers noticeable at current levels and the stock remaining at the upper circuit limit at Rs 0.87 on Wednesday, December 17, with an upside gap of 5% from the previous close.

At the current market price of Rs 0.87, the stock is trading with significant volatility and a notable decline from its recent peak, though it has staged a substantial recovery from its yearly bottom. Specifically, the stock has dropped by approximately 38.3% from its 52-week high of Rs 1.41 reached in December 2024, signalling a strong correction or cooling of investor enthusiasm over the last six months. However, when compared to its 52-week low of Rs 0.45 hit just recently in June 2025, the current price represents a 93.3% recovery, nearly doubling in value from its lowest point.

According to this stance, the stock is roughly in the center of its 52-week trading range, but it has gained strong upward momentum or "bounce-back" support after testing its lows, even if it is still deep in "discount" territory in relation to its yearly high.

Based in Indore, Madhya Pradesh, Auri Grow India Ltd. (previously Godha Cabcon & Insulation Ltd.) is a publicly traded firm in the Indian electrical industry that is well-known for producing power conductors (ACSR, AAAC) and wires for power infrastructure.