Heavy buying witnessed: Keep a close eye on this multibagger stock which announced demerger
The scrip has given multibagger returns of more than 127 per cent in just 1 year and more than 85 per cent in just 6 months
Mahalaxmi Rubtech is a textile manufacturing company and a part of the Mahalaxmi Group of Industries. It is engaged in the manufacturing and marketing of products of traditional textile and technical textile. In 2008 it merged Mahalaxmi Fabric Mills Pvt Ltd started textile manufacturing and is also exporting its products.
On February 16, 2023, the company announced demerger of traditional textiles processing division and wind power division of the demerged company along with existing investment of the demerged company in its wholly owned subsidiary company namely Mahalaxmi Exports.
Also, the scheme of arrangement provides for demerger of trading textiles division of the demerged company and vesting the same into the second resulting company. Post demerger, rubber/ technical textiles division and weaving division shall be remaining business of the demerged company.
The company is embarking upon the agenda of rapid growth and development over the coming years with clear focus on its core business in three different verticals i.e. rubber /technical textiles division, traditional textiles processing division and trading textiles division. It is therefore decided to create a simpler group structure wherein emphasis will be on the growth of all three divisions through different verticals.
Post the announcement of the demerger news on the aforementioned date, the stock surged more than 9 per cent in just 5 trading sessions and hit a new 52 week high of Rs 308.40 apiece on February 21, 2023.
On February 24, shares of Mahalaxmi Rubtech witnessed some profit booking and traded and closed 1.81 per cent down at Rs 295.30. The scrip has given multibagger returns of more than 127 per cent in just 1 year and more than 85 per cent in just 6 months. Keep a close eye on this trending multibagger stock.