Shivalik Bimetal Controls Limited, a small cap multibagger stock, has announced the record date for a 2:1 bonus issue. This means that eligible shareholders will receive one bonus share for every two equity shares held by them as of the record date.
The company is specialized in the joining of materials through various methods. It manufactures and sells thermostatic bimetal /tri-metal strips, components, spring rolled stainless steel, EB welded products with multigauge and more. Currently, it caters to a broad spectrum of industries.
“We wish to inform you that pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Thursday, October 13, 2022, as the Record Date to determine eligible shareholders entitled to receive the Bonus Shares,” the company said in an exchange filing. Its shares will start trading ex-Bonus on October 12, 2022.
Its board on 29th August 2022, informed the bourses that it has considered and approved the “ Issue of Bonus shares in the ratio of 2:1, i.e., one Bonus equity share of ₹ 2/- each for every Two fully paid up equity shares held, as on the record date.”
A year ago, the company’s shares were trading at ₹ 271.80 apiece. They were trading at ₹ 725.00 at 12:55 PM on Thursday. Therefore the company’s shares have given multibagger returns of 166.74%. If an investor would have invested ₹ 1,00,000 in the shares of the company a year ago, the value of their holdings would have been ₹ 2,66,740 today!
Shivalik Bimetal Controls Limited is a small cap stock with a market capitalization of ₹ 2808.00 crores. Its shares are trading at a price-to-equity ratio (PE) of 42.66, which is significantly higher than the sector PE. This indicates that the stock could be overvalued or there are high expectations for future growth.
Written by Simran Bafna
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