The share price of a seed producer gained 18 percent on the Bombay Stock Exchange (BSE) to reach a lifetime high of ₹ 515.00 apiece after the company announced a bonus issue. At 01:17 PM, its shares were trading at ₹ 515.00 apiece.
According to an exchange filing, the company has announced a bonus issue in the ratio of 1:1. Therefore, it will issue one bonus equity share of ₹ 1 each for every equity share held by the existing shareholders of the company. The board of directors have fixed Tuesday, 29th August 2023 as the record date for the issue
Indo Us Bio-Tech is involved in the production of various types of agricultural crop seeds like vegetable seeds, pulses, cereals, oilseed marketings, and spice seeds.
The company’s share price rallied by a massive 484 percent in the past year to deliver multibagger returns, as its share price increased from ₹ 88.20 apiece to ₹ 515.00 apiece. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 5.84 lakhs today!
With a market capitalization of ₹ 438 crores, Indo US Bio-Tech is a micro-cap company. It has an ideal return on equity of 16.86 percent and an ideal debt-to-equity ratio of 0.22. Its shares were trading at a price-to-earnings ratio (P/E) of 40.69, which is higher than the industry P/E of 24.57, indicating that the stock might be overvalued as compared to its peers. The company’s promoters hold a 70.17 percent stake in it, while retail investors hold 29.83 percent.
Written by Simran Bafna
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