6:11 bonus shares & 10:1 stock split: The Board of this textile company allots 14,83,410 equity shares on the conversion of warrants to One Tree Hill Properties Pvt Ltd
The stock gave multibagger returns of 130 per cent in just 1 year, 1,200 per cent in 2 years, and a whopping 6,700 per cent in 3 years.
On Tuesday, shares of Lorenzini Apparels Ltd plunged 1.19 per cent to Rs 26.47 per share from its previous closing of Rs 26.79 per share. The stock’s 52-week high is Rs 33.02 while its 52-week low is Rs 11.09.
Lorenzini Apparels Ltd., established in 2007, designs, manufactures, and markets ready-made garments for men and women through their own "Monteil" brand, offering formal, semi-formal, and casual wear, both in their exclusive stores and online, while also utilising third-party contractors for some garment production. The company has a market cap of over Rs 400 crore.
The Board of Directors approved the conversion of 1,48,341 warrants held by One Tree Hill Properties Private Limited into 14,83,410 equity shares. This conversion follows the preferential allotment of 10,38,371 warrants on October 5, 2023, where One Tree Hill Properties Private Limited exercised their right to convert a portion of their warrants upon paying 75 per cent of the issue price. The company also allotted 8,09,132 bonus shares that preserve the option for warrant holders to convert them into equity shares. There are still 3,95,570 warrants pending conversion. Due to a stock split, the conversion ratio for outstanding warrants is now 1 warrant for 10 equity shares (face value Re 1 each).
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Earlier, to make Lorenzini Apparels Ltd stock more accessible to investors and increase its trading activity, the company enacted a stock split and bonus share issuance on March 28, 2024. Existing shares with a face value of Rs 10 were subdivided into 10 shares with a face value of Rs 1 each. Additionally, shareholders on the record date received 6 bonus shares (Rs 1 each) for every 11 existing shares (Rs 10 each) they owned, essentially growing their total shareholding. This manoeuvre also expanded the company's authorized share capital from Rs 11,70,00,000 to Rs 17,30,00,000.
According to the Quarterly Results, the company reported net sales of Rs 9.97 crore and a net profit of Rs 0.32 crore in Q4FY24. The net sales increased by 24 per cent to Rs 54.76 crore and net profit skyrocketed by 110 per cent to Rs 5.30 crore in FY24 over FY23. The stock gave multibagger returns of 130 per cent in just 1 year, 1,200 per cent in 2 years, and a whopping 6,700 per cent in 3 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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