1:1 Bonus Share & FIIs Increase Stake: Multibagger Steel Tube Manufacturing Stock in Focus as Board Allots 1,04,445 Equity Shares to Five Non-Promoters

Today, shares of JTL Industries Ltd plunged 3.67 per cent to Rs 215 per share from its previous closing of Rs 217.50. The stock’s 52-week high is Rs 276.60 per share while its 52-week low is Rs 167.10 per share.

The Company's Securities Issue and Allotment Committee approved the allotment of 1,04,445 equity shares to five non-promoter/public category investors on July 25, 2024, upon receipt of the remaining 75 per cent of the warrant issue price. These equity shares were issued in exchange for the conversion of an equal number of warrants. Subsequently, a 1:1 bonus issue of 1,04,445 equity shares was allotted to these shareholders. As a result, the company's issued, subscribed, and paid-up equity share capital increased to Rs 38,32,75,458 comprising 19,16,37,729 equity shares of Rs 2 each. The new shares rank equally with existing shares. The allotment complies with SEBI regulations, and the warrants have an 18-month conversion period with a 25 per cent upfront payment and a 75 per cent balance due upon conversion. Failure to exercise warrants within 18 months results in forfeiture of the initial payment.

About the Company

JTL Industries Limited, a leading steel tube manufacturer with headquarters in Chandigarh, boasts a significant production capacity of 5,86,000 MTPA for pipes and 3,00,000 MTPA for backward integration across its facilities in Punjab, Maharashtra, and Chhattisgarh. The company offers a diverse range of products including GI pipes, MS pipes, hollow sections, and solar structures, all available in galvanized, pre-galvanized, and black steel grades, catering to various industrial and infrastructure needs. JTL's recent successful acquisition of Nabha Steels and Metals strengthens its backward integration strategy, allowing for greater control over production and potentially higher profits. With strong initial sales from Nabha and a focus on expanding value-added products to contribute 50 per cent of total sales, JTL Industries Limited is positioned for further growth, leveraging its high-quality products and growing export volumes to capture opportunities in the global market.

JTL Industries, a manufacturer of steel tubes, reported solid financial results for Q1FY25. Revenue grew to Rs 515.38 crore from Rs 504.80 crore in the same period last year, reflecting a 2.10 per cent increase. This growth was driven by factors like strategic market expansion, increased product demand, and higher sales volumes. JTL's profitability also improved in Q1FY25. EBITDA rose 20.8 per cent to Rs 43.86 crore, leading to an EBITDA margin of 8.50 per cent, up from 7.20 per cent in the previous year. This improvement reflects JTL's focus on high-margin products and operational efficiency. Net profit also grew by 21.0 per cent to Rs 30.70 crore.

In Q1FY25, FIIs increased their stake to 5.82 per cent compared to 4.48 per cent in March 2024. On September 07, 2023, the shares of the company ex-traded bonus share in the ratio 1:1 and earlier to it i.e., on August 04, 2021, the shares of the company ex-traded stock split of equity shares from a face value of Rs 10 to a face value of Rs 2 each. The stock gave multibagger returns of over 300 per cent in 3 years and a whopping 1,900 per cent in 5 years. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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