Multibagger in just 1 year, firm declares stock split and bonus issue; check details

“The board has recommended sub-division of 1 equity share of the company having face value of ₹10 each into 2 equity shares of the company having face value of ₹5 each,” said Maan Aluminium in its regulatory filing. The company added that the record date for proposed stock split will be announced in due course.

A stock split is done when a company increases the number of its outstanding shares to boost the stock’s liquidity. Although the number of shares outstanding increases, there is no change to the company’s total market capitalization as the price of each share will split as well. Upon the record date, the investors who are still holding the stock will receive new shares in their demat accounts and the price will be adjusted according to the split ratio declared the company.

The company’s board also approved the bonus issue of in the proportion of 1:1. ‘’The board has recommended issuing 1 bonus share for every 1 equity share held by the equity shareholders of the company,” said the regulatory filing. The bonus issue is subject to the approval of the company’s shareholders at its annual general meeting (AGM).

The company will inform in due course, the record date for determining shareholders entitled to receive bonus shares. A bonus issue of shares is the allocation of additional shares to stockholders. It helps in increasing the company’s share capital but not its market capitalisation.

When the bonus shares are issued, the shareholders do not have to pay any extra costs to get them and hence do not dilute their equity as they are issued in a constant ratio. They are funded by a company’s earnings or share reserves.

Maan Aluminium has become a multibagger returns rising 181 per cent in one year, and has almost tripled the wealth of investors in the period. It has surged almost 1,350 per cent in almost three years. In 2023 so far, the stock is up 91 per cent. 

On Friday, June 9, shares of Maan Aluminium settled 1.60 per cent higher at ₹322.90 apiece on the BSE. It became one of the top gainers on BSE during Friday’s session, rallying over three per cent to touch a fresh 52-week high of ₹327 per share. The firm commands a market capitalisation of ₹436.60 crore.

During the fourth quarter of fiscal 2022-23, the company reported a 77 per cent rise in profit to ₹14.46 crore, compared to ₹8.17 crore profit in the corresponding quarter of previous fiscal. The revenue grew 103.78 per cent to ₹262.87 crore in the fourth quarter, compared to ₹129 crore in the year-ago period.

On an annual basis, the company’s net profit zoomed as much as 127 per cent to ₹50 crore for the fiscal ended March 2023, compared to ₹22 crore in the year-ago fiscal. Maan Aluminium is one of the pioneers in the aluminium extrusion industry in India. The company produces aluminum extrusions and manufactures products for the automation, air conditioning, construction, autombile as well as the scaffolding industries.

Updated: 10 Jun 2023, 05:49 PM IST