1:10 Stock split announcement: This multibagger micro-cap company announced share split and rights issue; must watch!
The shares of the company have delivered a return of over 140 per cent to its shareholders over the past 2 years.
It is a prominent manufacturer and exporter of whole and blended spices. The company has announced several major corporate actions following the Board of Directors meeting on Thursday, May 30, 2024.
Firstly, the Board has approved a stock split of the company's equity shares. This split will transform each equity share with a face value of Rs 10 into 10 equity shares with a face value of Re 1 each. The record date for this stock split will be decided by the Board and announced to the exchange in due course.
In addition to the stock split, the Board has approved an increase in the company's authorized share capital. The authorized share capital will be raised from the current Rs 24 crore to Rs 65 crore. This increase will rank pari-passu with the existing equity shares in all respects as per the MOA, with the necessary alteration of the capital clause (Clause V) of the MOA being made, again subject to the consent of the company's members.
Furthermore, the Board has sanctioned raising funds through a rights issue, aiming to secure an amount not exceeding Rs 49 crore. This rights issue will be available to eligible equity shareholders of the company as of the record date, which will be notified subsequently. These strategic moves reflect NHC Foods’ commitment to enhancing shareholder value and supporting its growth objectives.
On Thursday, the shares of NHC Foods closed at around Rs 44.49 per share, with a market capitalisation of Rs 53 crore. Additionally, the stock has delivered a return of around 488 per cent in the past 3 years.
According to the Quarterly Results, in Q2 FY24, the company reported a revenue of Rs 79.54 crore and a net profit of Rs 1.08 crore. In FY24, the company reported a revenue of Rs 209 crore and a net profit of Rs 2 crore, compared to a net profit of Rs 2 crore in the previous year.
Investors must keep this micro-cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.