6:11 bonus shares & 10:1 stock split: Multibagger textile stock under Rs 25 jumps 7 per cent; Board allots 24,72,300 equity shares to Pearl Dealers Pvt Ltd
The stock gave multibagger returns of 1,055 per cent in 2 years and a whopping 5,500 per cent in 3 years.
Today, shares of Lorenzini Apparels Ltd gained 7 per cent to Rs 22.61 per share from its previous closing of Rs 21.14 per share. The stock’s 52-week high is Rs 33.02 while its 52-week low is Rs 12.03.
The company's board approved the conversion of 2,47,230 warrants held by Pearl Dealers Private Limited into 24,72,300 equity shares upon receiving Rs 3.75 crore (75 per cent of the issue price) post-stock split. This follows the preferential allotment of 10,38,371 warrants at Rs. 202.24 each in October 2023, with the remaining 75 per cent payment due for conversion. Additionally, 13,48,527 bonus equity shares were allotted, reserving a portion for potential conversion of remaining warrants.
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 340 crore.
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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 1,055 per cent in 2 years and a whopping 5,500 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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