Auri Grow India Stock Jumps as Hong Kong Firm Eyes 24% Stake

Shares of Auri Grow India, a penny stock trading under Re 1, hit the 5% upper circuit at ₹0.87 on Wednesday, December 17. This surge followed a Letter of Intent (LoI) issued by Hong Kong-based FII, Luminary Crown, to explore the acquisition of up to a 24% equity stake in the company.

The proposed deal suggests a price of ₹2 per share, which is significantly higher than Auri Grow India's market price of ₹0.84 on December 16. This represents a substantial premium for investors.

The stock has been on a winning streak, gaining for twelve straight sessions and soaring 74% overall. Notably, the stock only experienced a single day of losses throughout December.

The LoI outlines a potential investment through a primary issuance via preferential allotment. This is contingent upon regulatory, statutory, and shareholder approvals. Auri Grow, listed on the NSE as AURIGROW, operates in the agriculture, agri-technology, and export sectors. The company views this proposal as a strategic opportunity for both capital infusion and a valuable partnership.

**Key Aspects of the Letter of Intent**

Luminary Crown's LoI includes a request to nominate a director to Auri Grow's board as part of the proposed minority investment. Auri Grow has clarified that these governance rights are limited to standard investor protections and do not indicate any changes to the company's management control.

According to Director Pratik Kumar Patel, the LoI is "non-binding and indicative in nature," and no definitive agreements are currently in place. He stated that the LoI reflects strong strategic interest in Auri Grow's transformation into a high-growth agriculture, agri-technology, and export-oriented enterprise. He also noted that it demonstrates growing external confidence in the company's long-term vision and asset base. Patel added that the company will continue to disclose material developments to the exchanges as they occur.

The LoI also details three strategic collaboration initiatives to accelerate Auri Grow's expansion:

• Rice Aggregation, Processing & Export:** This initiative aims to strengthen Auri Grow's involvement in rice aggregation, processing, and export, targeting key markets in the GCC and select European regions. The goal is to establish a scalable, export-focused agricultural platform that leverages India's competitive advantage in rice exports.
• Hydroponics & Aeroponics Farming Project:** Luminary Crown plans to spearhead a hydroponics and aeroponics farming project focused on sustainable, technology-driven agriculture. The estimated cost is around ₹55 crore, with projected annual revenues of ₹180–200 crore and an indicative net margin of approximately 13%, depending on market conditions. This initiative is designed to boost productivity and significantly strengthen Auri Grow's presence in high-value, premium agriculture segments.
• Organic Farming on Company Land Bank:** The LoI proposes establishing organic farming operations on Auri Grow's land parcels for a minimum of five years, with mutually agreed-upon commercial terms.

Auri Grow's financial performance has shown significant improvement. Sales for FY24–25 rose to ₹175.55 crore, compared to ₹16.76 crore in FY23–24, representing nearly a tenfold increase. Net profit for FY25 climbed to ₹7.17 crore, up from ₹51 lakh the previous year, highlighting the company's rapid operational growth.

**Auri Grow Share Performance**

While the penny stock has decreased by 32% over the past year, its recent performance has been strong. It has jumped 73% in the last 6 months, 43% in the last 3 months, and 56% in the last month.