Multibagger Alert: Shakti Pumps Announces 5:1 Bonus Share Issue After 300% Stock Surge YTD

Shakti Pumps, a leading manufacturer of energy-efficient pumps and motors, has announced a significant decision regarding bonus shares. On Monday, October 7, 2024, the company’s board approved the issuance of bonus shares in a 5:1 ratio, following a remarkable 300% rally in its stock price year-to-date.

Details of the Bonus Share Issue

According to the announcement, shareholders will receive five new shares for every one share they currently own. This bonus share issue is aimed at rewarding the company’s investors after a strong performance in the stock market this year.

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In an official exchange filing, the company stated, “The Board of Directors of Shakti Pumps (India) Limited at its meeting held today, i.e., Monday, October 07, 2024, recommended the issue of bonus shares in the ratio of 5:1. This means five new fully paid-up equity shares of ₹10 each will be issued for every one existing fully paid-up equity share. This is subject to the approval of the company’s members through a postal ballot process.”

Record Date Yet to Be Decided

As of now, the company has not finalized the record date for the bonus share issue. The record date is crucial as it determines which shareholders will be eligible to receive the bonus shares. Shakti Pumps mentioned in its filing, “The record date to determine eligible shareholders for bonus equity shares shall be intimated in due course of time to the exchanges separately.”

Increase in Authorised Share Capital

In addition to the bonus share issue, Shakti Pumps also announced that it will increase its authorised share capital. The company’s board has approved raising the authorised share capital from ₹40 crore to ₹190 crore. This increase is subject to approval from the company’s members.

The proposed bonus issue and the capital increase reflect the company’s confidence in its growth trajectory and its commitment to enhancing shareholder value.