Multibagger stock rallies 554% in 6 months, Board recommends 1:10 stock split

The company said today in a stock exchange filing that “This is further to the Company’s intimation letter dated 16th December 2022, intimating the date of Board Meeting. We wish to inform that Board of Directors of the Company at its meeting held today i.e., 03rd January 2023, inter alia, has considered,approved and taken on record the following: i. Recommendation to sub-divide/split of existing equity share of the Company from face value of Rs. 10/- each fully paid-up to Rs. 1/- each fully paid-up and matters related thereto, subject to approval of members of the Company and such authority(ies) as may be required. The Record Date for such sub-division/split of equity shares will be intimated in due coursé.”

The stock split ratio of Karnavati Finance is 1:10 or existing one equity share of the Company having face value of ₹10/- each fully paid will be subdivided/split into 10 (Ten) equity shares having face value of ₹1/- each fully paid-up. The rationale behind the stock split is to enhance the liquidity of the Company’s equity shares and encourage the participation of small behind the investors by making Company’s share more affordable, said the Board of Directors in a stock exchange filing.

The shares of Karnavati Finance Ltd closed today on the BSE at ₹171.50 apiece level after hitting a fresh 52-week-high of ₹174.10, down by 0.84% from the previous close of ₹172.95. The stock recorded a total volume of 9,048 shares. The stock has produced a multibagger return of 512.50% over the past five years, and a multibagger return of 753.23% during the past year. The stock has produced a multibagger return during the past six months of 554.58%, and over the past month, it has appreciated by 14.75%. The stock had touched a 52-week-low of ₹14.15 on (05/04/2022), indicating that at the current market price the stock is trading 1,112.01% above the 1 year low.