6:11 bonus shares; 10:1 stock split: High ROE & high ROCE textile stock under Rs 25; Board approves allotment of 24,72,300 equity shares via warrants conversion!

The stock gave multibagger returns of 1,500 per cent in 2 years, 5,785 per cent in 3 years and a whopping 6,000 per cent in 5 years.

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 Rs 360 crore.

Today, shares of Lorenzini Apparels Ltd surged 3.36 per cent to Rs 24.63 per share from its previous closing of Rs 23.83 per share. The stock’s 52-week high is Rs 33.02 while its 52-week low is Rs 11.09.

The company's board approved the conversion of 2,47,230 warrants held by Kiwi Dealcom Private Limited into an equal number of equity shares, for a total of Rs. 3,74,99,846.4. These warrants were originally issued in October 2023 for Rs. 202.24 per warrant, with an upfront payment of Rs. 50.56 and the remaining 75% (Rs. 151.68) due within 18 months. Kiwi Dealcom exercised their conversion right by paying the remaining balance, resulting in the allotment of the equity shares. Due to a stock split, the conversion ratio changed from one warrant for one equity share (Rs. 10 face value) to one for ten equity shares (Re. 1 face value). There are still 7,91,141 warrants outstanding that can be converted within the timeframe.

To increase share liquidity and affordability, Lorenzini Apparels Ltd. implemented a stock split and bonus issue on March 28, 2024. The company subdivided the face value of existing shares from Rs 10 to Rs 1 each. Shareholders on the record date received 6 new bonus shares (face value Rs 1 each) for every 11 existing shares (face value Rs 10 each) they held, effectively increasing their total share ownership. This corporate action also increased the authorized share capital of the company from Rs 11,70,00,000 to Rs. 17,30,00,000.

Also Read: 2:1 bonus share; 10:1 stock split: Multibagger penny stock at Rs 1.57 with 3,800 per cent returns in green as it reports a 380 per cent jump in net profit!

The company has received trading approval from the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) dated April 15, 2024, for the issuance of bonus shares. The effective date was Tuesday, April 16, 2024.

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 1,500 per cent in 2 years, 5,785 per cent in 3 years and a whopping 6,000 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

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