Auri Grow India Share Price Surges on FII Investment Proposal

Market Performance

Auri Grow India, a small-cap penny stock trading below Re 1, surged to ₹0.87 on Wednesday, December 17, hitting its 5% upper circuit. The rally followed a non-binding Letter of Intent (LoI) from Hong Kong-based FII Luminary Crown to acquire up to 24% stake at ₹2 per share, significantly higher than the previous close of ₹0.84.

The stock has now recorded gains for 12 consecutive sessions, showing strong momentum in December with 11 out of 12 sessions closing in the green.

Main News: FII LoI Sparks Excitement

The proposed investment by Luminary Crown highlights confidence in Auri Grow India’s high-growth business model. The LoI suggests a significant infusion of capital via a preferential allotment, subject to statutory and shareholder approvals.

The company, listed on the NSE as AURIGROW, focuses on agriculture, agri-technology, and export-oriented ventures. The potential partnership aims to enhance strategic growth and operational scale.

Key Points of the LoI

• Board Nomination Rights: Luminary Crown may nominate one director, though governance rights remain standard and do not change management control.
• Non-binding Agreement: The LoI is indicative, and no definitive agreements have been executed.

Director Pratik Kumar Patel stated, “The receipt of this LoI demonstrates growing external confidence in our long-term vision and asset base, supporting our transformation into a high-growth agriculture and export-focused enterprise.”

Strategic Growth Initiatives

The LoI outlines three primary initiatives to accelerate Auri Grow’s operations:

• Rice Aggregation, Processing & Export
  • Strengthen participation in rice aggregation and export.
  • Target markets include the GCC and select European regions.
  • Goal: Create a scalable, export-oriented agri platform leveraging India’s competitive advantage.
• Hydroponics & Aeroponics Farming Project
  • Focus on technology-driven, sustainable farming.
  • Projected cost: ₹55 crore.
  • Expected annual revenue: ₹180–200 crore, with a net margin around 13%.
  • Designed to boost productivity and expand footprint in high-value agricultural segments.
• Organic Farming on Company Land Bank
  • Establish organic operations on Auri Grow’s land for a minimum five-year period.
  • Commercial terms to be mutually finalized.

Company Details & Financial Performance

Auri Grow India has experienced rapid growth over the last fiscal year:

• Revenue FY24–25: ₹175.55 crore, up from ₹16.76 crore in FY23–24
• Net Profit FY24–25: ₹7.17 crore, compared with ₹51 lakh in the previous year

The nearly tenfold growth in revenue underscores the company’s rapid operational expansion in the agriculture and agri-tech sectors.

Share Performance

Despite a 32% decline over the past year, Auri Grow India’s recent momentum is strong:

• Last 6 months: +73%
• Last 3 months: +43%
• Last 1 month: +56%

This surge reflects renewed investor interest following the FII proposal.

Summary

Auri Grow India has captured market attention with its penny stock rally, fueled by strategic FII interest and significant growth potential. The company’s expansion plans in rice exports, hydroponics, and organic farming underscore its long-term vision as a high-growth, technology-driven agriculture enterprise.