Multibagger Alert: Rajratan Global Wire announces stock split; hits 5 per cent upper circuit

Rationale behind the split is to facilitate a larger shareholder base, to increase the liquidity and to make the shares more affordable to investors.

India's leading manufacturer of high carbon steel wire, Rajratan Global Wire has informed the exchange that the Board of Directors of the company at a meeting held on Friday, January 28, 2022, have, inter alia, considered and approved the sub-division/stock split of existing one equity share of Rs 10 each fully paid up into 5 equity shares of Rs 2 each fully paid up, subject to the approval of members through postal ballot.

The record date for the said sub-division/stock split will be intimated in due course subject to compliance with necessary laws. Rationale behind the split is to facilitate a larger shareholder base, to increase the liquidity and to make the shares more affordable to investors.

Rajratan Global Wire Ltd is an India headquartered tyre ancillary, manufacturing bead wire, a critical component used in the manufacture of tyres. The company has well established and profitable operations based out of India and Thailand. The company deals with nearly every tyre company in India as its customer. Based out of Indore, Madhya Pradesh, the company has a production capacity of 72,000 TPA of wire (largest bead wire manufacturer) at a single location in India and 40,000 TPA at a single location in Thailand.

The company has embarked on an expansion in Thailand from 40,000 TPA to 60,000 TPA. The company has also signed a long-term lease and received possession of land at Sipcot Industria Park, Tamil Nadu to set up an additional 60,000 TPA plant near Chennai to target domestic as well as export markets. This will be over and above the existing 72,000 TPA in India.

The company’s stock price has soared high like an eagle since the beginning of 2022 rallying 26.62 per cent and has furnished returns of more than 375 per cent over the last one year.

On Friday, January 28, 2022, the scrip of Rajratan Global Wire closed at Rs 2,616.50 per share, locked in a 5 per cent upper circuit. 

Investors should keep an eye on this counter for more action on Monday.