400% Gain In 3 Yrs: Multibagger Small Cap Stock Okays 4:1 Bonus Shares

Within the capital goods industry, Salasar Techno Engineering Ltd. is a small-cap company. Given that the board of directors announced bonus shares in a 4:1 ratio, the tower maker firm is probably going to be the focus of attention.

The company said in a stock exchange filing that the Board of Directors in their meeting held today i.e. Wednesday, December 20, 2023 "Recommended the issue of Bonus Shares in the proportion of 4:1 i.e. 4 (Four) new fully paid-up bonus equity share of Rs l ( Rupees One only}each for every 1 (one) existing fully·paid-up-equity-share of Rs:1/- each held by the Members of the Company as on the Record Date, subject to / shareholders and other statutory approvals."

Considering to fix the record date for the above-mentioned bonus shares, the Board said "Record Date to determine the eligible shareholders shall be decided and will be intimated to exchange separately."

126,28,21,120 Equity Shares of Rs. 1/- each fully paid-up are the total number of securities proposed to be issued as a part of bonus share corporate action. The bonus equity shares will be issued out of the securities premium account of the company available as of September 30, 2023 and as of September 30, 2023 Rs. 38,450.07 lacs of funds available as free reserves or share premium available for capitalization.

From the free reserves, Rs. 126,28,21,120 /- is required for implementing the bonus issue, said Salasar Techno Engineering in a stock exchange filing. Within 2 months from the date of the Board Meeting i.e. today is the estimated date by which such bonus shares would be credited.

Salasar Techno Engineering said, the Board of Directors also approved an increase in the authorised share capital of the company to Rs. 175.00 Crore equity shares of Re. 1/- each from the existing authorised capital of Rs. 35.00 Crore equity shares of Re. 1/- each.

Over the past three years, the stock has produced a 408% multibagger return, and over the past five years, it has generated a 314% multibagger return. The stock has gone up by 5.23% over the last year, and so far in 2023, it has climbed by 9.91% YTD. On Wednesday, the shares of Salasar Techno Engineering were trading on the BSE at Rs 59.60 apiece. The scrip reached a 52-week-high of Rs 64.75 on (20/12/2023) and a 52-week-low of Rs 36.00 on (28/03/2023).