2:1 Stock Split, 1:1 Bonus Issue: Rs 960 NBFC Stock's Record Date Nearing Soon, Gives 677% Returns

NBFC company, Capri Global Capital has declared a host of rewards for its investors. The company will not only split its 1 existing equity share into two shares but will also give 1 bonus share to its investors. The record and ex-dates have been fixed and are nearing in the first week of March. Capri Global is a multi-bagger with nearly 677% returns in 5 years.

Capri Global believes that both stock split and bonus issue shall enhance its free float liquidity and aid in shareholder value creation.

Capri Global Capital Share Price:

On BSE, Capri Global's share price ended at Rs 961.60 apiece, up by 0.6% with a market cap of Rs 19,831.56 crore on Friday last week.

The stock is nearing its 52-week high of Rs 1,048.40 apiece while trading higher by nearly 70% from its 52-week low of Rs 565.85 apiece.

In six months, Capri Global's share has jumped by 21%, while its stock has advanced by 24.44%. In a year, the stock has gained by 40.14%, and in 5 years, the stock is a multi-bagger with the upside of a whopping 676.61% on the exchange.

Capri Global Capital Stock Split:

The company-approved stock split in the ratio of 2:1, which means 1 existing equity share at a face value of Rs 2 each will be split into two having a face value of Rs 1 each.

The stock split will increase the fully paid-up equity of CGCL from Rs206.23mn pre-split to Rs412.46mn post-split. The authorized share capital will be increased from Rs360mn to Rs720mn to accommodate the increase in paid-up equity capital. The Company's stock had last split in Nov'16
from Rs10/- face value to Rs2/- face value.

The record and ex-bonus date for the stock split is set on March 5, 2024.

Capri Global Capital Bonus Issue:

The company also announced a 1:1 bonus issue, that is, one bonus share for every one fully paid-up equity share held by the shareholders. The Company shall utilize Rs412.46mn from the balance in the securities premium account for bonus issuance. CGCL had Rs18,834mn in the securities premium account as of March 31, 2023.

The record date is also fixed on March 5, for its ex-bonus and determining eligible shareholders.

Capri Global Capital Earnings:

CGCL maintained AUM momentum with the consolidated AUM including co-lending AUM increasing 54% YoY and 8% QoQ to touch Rs133,621mn. Retail growth momentum during the quarter was driven by Gold (15% QoQ) and Housing (8% QoQ). Co-lending AUM stood at Rs11,948mn comprising 9% of consolidated AUM compared to 8% in Q2FY24 and 5% in Q3FY23. CGCL has continued to build upon its co-lending partnerships in all three products with strong prospects building up in Gold Loan co-lending. The overall AUM growth was granular with live customer relationships increasing by 195K YoY to touch 300K.

As guided by the Company management earlier, CGCL is improving the provision cover on its Stage-3 loans. The PCR on Stage-3 loans enhanced to 34.7% in Q3FY24 from 32.3% in Q2FY24 and 29.1% in Q3FY23. The gross Stage 3 ratio at 2.1% was higher at 18bps QoQ but lower at 22bps YoY.

During the quarter, CGCL received a composite license from insurance regulator IRDAI allowing it to distribute life, non-life, and health insurance policies. This shall be an important source of fee income in the future and the Company is looking to generate at least Rs200mn in net fee income from insurance distribution in FY25E.

Capri Global Capital Limited (CGCL) is a diversified Non-Banking Financial Company (NBFC) with a presence primarily across two key verticals - MSME Loans and Home Loans.

Disclaimer: The write-up highlights the latest development in stock split and bonus issues, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.