4:1 Bonus, 1:10 Split; Below Rs 20, Smallcap Stock Hits Upper Circuit After 3-Days Fall; 968% Returns In 5 Yrs

Salasar Techno Engineering, a smallcap industrial company, touched 5% upper circuit on Tuesday after falling for three days in a row. The stock is trading near the Rs 20 mark, and crossed its 5-day SMA, 10-day SMA, 200-day SMA, and 150-day SMA. The stock has further given fruitful returns in the long term.

SMAs are one of the key indicators to understand the trend in a listed stock. Simple moving averages (SMAs) are a sum-up of an average closing price of the stock for a specific period of days. When a stock is trading below the SMA line, it indicates a bearish signal in the stock and vice versa.

Salasar Techno Engineering Share Price:

Salasar shares tumbled by nearly 5% from May 9th to 13th. But recovered the losses on May 14th as investors held a bullish remark owing to its healthy order book.

On Tuesday, the stock ended at Rs 19.97 apiece, at its 5% upper circuit with a market cap of Rs 3,152.32 crore. The stock's 52-week high and low is at Rs 34.08 apiece and Rs 8.33 apiece respectively.

YTD, the stock is up by 50%. While in a year, the stock zoomed by 139%. But in 5-years, Salasar has rallied by a whopping 967.91%. The stock was merely at Rs 1.87 apiece on May 17, 2019.

Salasar Techno Engineering New Acquisition:

The stock received approval for the allotment of 3,25,00,000 fully paid-up equity shares of face value of Re. 1/- each, under conversion of 3,25,00,000 fully convertible warrants into said equal number of equity shares at an issue price of Rs. 14.40/- (including a premium of Rs. 13.40/- each), to the following allotee under the "Non-Promoter, Public Category", on preferential basis, upon receipt of balance amount aggregating to Rs 35.10 crore at the rate of Rs. 10.80 per warrant from the allottees.

The allottee is Coeus Global Opportunities Fund.

Also, Salasar has completed the payment of the remaining balance amounting to Rs 168 crore for the acquisition of EMC Ltd. (Formerly known as Electrical Manufacturing Company Limited).

The management team of Salasar Techno said on May 7, said, "As we embark on this new chapter of growth, we remain focused on leveraging our combined strengths to drive innovation, deliver excellence, and achieve sustainable success. We are excited about the possibilities that lie ahead and look forward to realizing the full potential of this acquisition in the years to come."

Salasar Techno Engineering Bonus Share, Stock Split:

Salasar turned ex-bonus on February 1, 2024, for its bonus share in the ratio of 4:1. Meaning, the company issued 4 new bonus shares for every 1 existing equity share.

Notably, this will be the second bonus issue in the post-pandemic era by Salasar. Earlier, in July 2021, the stock turned ex-bonus for an issue of 1:1.

Apart from this, the company has also split in the ratio of 1:10 in June 2022. The face value of Rs 10 has been reduced to Rs 1 of Salasar since then.

Incorporated in 2006, Salasar Techno is a provider of customized steel fabrication & infrastructure solutions in India. It provides 360-degree solutions by carrying out engineering, designing, fabrication, galvanization and deployment. Salasar Techno's product portfolio includes telecommunication towers, power transmission line towers, smart lighting poles, utility poles, high mast poles, stadium lighting poles, monopoles, substation structures, solar module mounting structures, railway electrification (OHE), Road & Railway Over-Bridges (ROB) and customised galvanized & non-galvanized steel structures.

Salasar Techno's services include providing complete Engineering, Procurement & Control (EPC) for projects such as rural electrification, power transmission lines and solar power plants. The Company is among the leading manufacturers with the current installed capacity of 2,11,000 MTPA having supplied, 50,000+ Telecom Towers, ~746 km of Power Transmission Lines, and ~629 km of Railway Track, to 600+ clients in 25+ Countries.