Multibagger Textile Stock Announces Bonus Issue of worth Rs 13,30,00,000 with Bonus Ratio of 2:1
The stock price has given multibagger return of 207 per cent in the last year.
Kitex Garments Limited informed that the Board of Directors of the Company at its meeting held today, November 22, 2024, the BOD considered the issue of bonus equity shares in the ratio of 2:1 i.e. 2 (Two) new fully paid equity shares of Rs 1 each for every 1 (One) existing equity share of ͅRs 1each held as on Record date by the shareholder. The Company will inform the "Record Date" for determining eligible shareholders entitled to issuance of Bonus Shares, in due course.
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The bonus equity shares will be issued out of the Company's free reserves as of March 31, 2024. As of date, the pre-bonus paid-up equity share capital is Rs 6,65,00,000 consisting of 6,65,00,000 equity shares of Rs 1 each. The post-bonus paid-up equity share capital is expected to be around Rs 19,95,00,000 consisting of 19,95,00,000 equity shares of Rs 1 each.
An amount of Rs 13,30,00,000 will be appropriated from General Reserve or Retained Earnings for the issuance of Bonus shares.
Reserves & Surplus as of March 31, 2024:
General Reserve: Rs 326,75,00,000.00
Retained Earnings: Rs 629,30,38,724.80
Bonus shares would be credited/dispatched within 2 months from the date of Board approval, i.e., On or before January 20, 2025
On Friday, shares of Kitex Garments Limited slipped 3.70 per cent. The company has a market capitalisation of Rs 4,284 crore and is currently trading at Rs 644. Over the past 52 weeks, the stock has reached a high of Rs 702 and a low of Rs 177. The stock price has given multibagger returns of 207 per cent in the last one year.
The company has a market cap of Rs 4,237 crore. According to Quarterly Results, the net sales increased by 48 per cent to Rs 215.88 crore and net profit increased by 370 per cent to Rs 36.73 crore in Q2FY25 compared to Q2FY24 while in its half-yearly results, the net sales increased by 45 per cent to Rs 406.32 crore and net profit increased by 200 per cent to Rs 63.41 crore in H1FY25 compared to H1FY24.
About the Company
Kitex Garments Limited was incorporated in 1992 and is promoted by Mr. Sabu M Jacob. The company exports cotton and organic cotton garments especially infant wear to US and European markets
Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.