5,800 per cent returns in this multibagger micro-cap stock; Board issued bonus shares in 1:1 ratio for the first time ever after Rs 5/share dividend!

The stock gave multibagger returns of 5,885 per cent over the period of 3 years whereas BSE Small-Cap Index is up just up by 142 per cent.

Tinna Rubber and Infrastructure Limited (BSE: 530475), India’s largest integrated waste tyre recycler informed that the Board of Directors of the company has approved allotment of 85,64,750 Fully paid-up equity shares of Rs 10 each, as equity bonus shares at its meeting held today, i.e., on September 19, 2023.

The equity bonus shares are allotted in the proportion of 1:1 i.e., 1 new fully paid-up equity share of Rs 10 each for every 1 existing fully paid-up equity share of Rs 10 each held, to the eligible members whose name appeared in the list of beneficial owners as on September 16, 2023, being the record date fixed for this purpose.

Pre-Allotment: 85,64,750 equity shares of Rs 10 each, amounting to Rs 8,56,47,500.

Post-Allotment: 1,71,29,500 equity shares of Rs 10 each, amounting to Rs 17,12,95,000.

Earlier, the company gave a dividend of Rs 5/share having a face value of Rs 10 each which ex-traded on August 14, 2023.

On Friday, shares of Tinna Rubber and Infrastructure Ltd surged 2.49 per cent to Rs 481.65 per share from its previous closing of Rs 469.95.

Recently, the company entered into an agreement for the purchase of land with Indus Project Ltd and paid approx. Rs 10 crore under the memorandum of agreement.

Furthermore, the company has introduced a new plant at our existing Panipat facility dedicated to producing Thermo Plastic Elastomer (TPE). The estimated investment for the project is Rs 2.50 crore.

Talking about the financials, Tinna Rubber and Infra has a market cap of Rs 825 crore.  The company reported amazing numbers in its Quarterly Results and annual results. The shares of the company have a ROE of 24.4 per cent and an ROCE of 23.6 per cent.

The stock gave multibagger returns of 5,885 per cent over the period of 3 years whereas BSE Small-Cap Index is up just up by 142 per cent. Investors should keep an eye on this micro-cap stock under their watchlist.

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