In a major relief, the Government of India announced it would convert the interest dues that the company owed to the government into equity, a move that was pending since September 2021. Vodafone Idea is a classic penny stock, the future of which has been hanging in balance owing to the company’s humongous debt obligations amid fierce competition in the telecom sector in India. Stocks within the annual trading range of approximately INR 30 have been considered for this analysis. While investing in penny stocks, investors must remember one has to be diligent in their research and invest their entire corpus in a diversified manner to hedge against potential risks that come with higher return prospects of penny stocks.įorbes Advisor India analyzed the top 50 penny stocks listed on the Bombay Stock Exchange and the National Stock Exchange and chose the top penny stocks that could potentially help investors build wealth.

Hence, it is not necessary you would be able to make phenomenal returns when investing in penny stocks. Some penny stocks die out with time and may potentially get delisted resulting in losses. For instance, you may buy a penny stock at a very low price but may not find buyers when you wish to sell it. They are not frequently-traded stocks and often sudden bouts of market volatility determine the returns investors can potentially make on them.īeing low on liquidity, penny stocks could be quite risky to invest in. Penny stocks are stocks of small publicly-traded companies listed on stock exchanges for a price generally lower than INR 10.

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