The shares of the Leading Manufacturer of Premium Quality Steel Wires gained around 7 percent in five trading sessions after the company announced a record date for a bonus issue.
On Thursday, D P Wires Ltd’s shares were trading at Rs 662.75 a share, up 1.32 percent from the previous close price and the company has a market capitalization of Rs 898 crores.
According to the company’s BSE filings, The company board of directors approved the Bonus Issue of Equity Shares in a 1:7 ratio, which means the company would issue one bonus share for every seven shares owned by existing shareholders.
The Company has set November 8th, 2023 as the Record Date for determining the Company’s list of shareholders eligible for bonus equity shares, Further, the shareholders of the Company have approved the issue of bonus shares by passing an Ordinary Resolution in the extraordinary general meeting held on Thursday, 26 October 2023.
Veteran Bollywood actor Mr. Amitabh Harivansh Rai Bachchan holds 1,99,310 shares in the firm as of the September 2023 quarter, equivalent to 1.47 percent.
The company’s stock has gained 59 percent returns in six months and 57 percent over a year.
D P wires revenue has increased by 32 percent year on year, from Rs 200 crore in Q1FY23 to Rs 265 crore in Q1FY24. During the same period, net profit climbed by 57 percent, from Rs 7 crore to Rs 11 crore.
The Company’s return on equity increased from 19.14 percent in FY22 to 21.42 percent in FY23, while the return on capital employed rose from 26.47 percent to 29.77 percent during the same period.
According to the recent shareholding pattern, the company promoters hold 74.75 percent of the company, and retail investors have a 25.25 percent stake.
DP Wires is specialized in manufacturing, exporting, and the supply of premium quality specialized steel wires. The company’s products are used in the automobile industry, and infrastructure projects such as dams, bridges, flyovers, metros, etc.
Written by Omkar Chitnis
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