1:1 Bonus Share & 3,825 Per Cent Multibagger Returns: Steel Stock In Green as Company Completes Fund Raising Through Preferential Issue Made On March 03, 2023
The stock gave multibagger returns of 2,895 per cent in 5 years and a whopping 3,825 per cent in a decade.
JTL Industries Limited successfully completed a preferential issue on March 3, 2023, raising funds to expand its production capacity. The company, known for its high-quality steel pipes and structures, used the proceeds to support its growth objectives. The preferential issue involved the allotment of equity shares to both public and non-promoter categories. JTL is confident that this strategic move will enable it to meet its production goals and maintain its position as a leading player in the steel industry.
The preferential issue consisted of two components: equity shares issued upon the conversion of warrants and bonus shares allotted in a 1:1 ratio. A total of 24,51,543 equity shares were allotted at an issue price of Rs 300.00 each, with 75 per cent of the price payable upon warrant exercise. The bonus shares were issued on the converted equity shares, increasing the company's paid-up share capital to Rs 39,30,81,630. The warrants had a tenure of 18 months, and any unexercised warrants would lapse, with the paid amount forfeited. After the conversion and bonus allotment, the company's share capital increased to 19,65,40,815 equity shares of Rs 2 each.
JTL Industries Limited boasts a significant production capacity across its facilities in Punjab, Maharashtra, and Chhattisgarh. Offering a diverse range of products including GI pipes, MS pipes, hollow sections, and solar structures, JTL caters to various industrial and infrastructure needs. The company's recent acquisition of Nabha Steels and Metals strengthens its backward integration strategy, while its approved resolution plan for RCI Industries & Technologies Limited expands its footprint into the copper products market. With strong initial sales from Nabha, a focus on value-added products, and the potential synergies from RCI's acquisition, JTL is well-positioned for further growth in both domestic and global markets.
Commenting on the development, the management team of JTL stated:
“We are delighted to announce that JTL has completed the Fund Raising through Preferential Issue made in March 2023. This achievement is a testament to our investors' confidence in our business model and growth strategy. The influx of capital will be instrumental in completing our planned expenditures, as outlined in our growth strategy. With this capital infusion, we are well-positioned to accelerate our capacity expansion initiatives. We remain committed to adhering to our project timelines, ensuring that we effectively scale our operations to meet the increasing demand in the market. This development reinforces our dedication to driving sustainable growth and creating long-term value for our stakeholders. We want to thank our investors for their continued support, which enables us to pursue our ambitious goals and enhance our competitive positioning in the industry. We are optimistic about the opportunities as we move forward and remain focused on delivering exceptional results.”
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About the Company
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.
Today, shares of JTL Industries Ltd surged 1.5 per cent to Rs 239 per share from its previous closing of Rs 235.50 with a spurt in volume by more than 1.01 times on BSE. The stock’s 52-week high is Rs 276.60 per share while its 52-week low is Rs 167.10 per share. The stock gave multibagger returns of 2,895 per cent in 5 years and a whopping 3,825 per cent in a decade.
Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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