Textile Stock Declares Major Update On 6:11 Bonus Shares Ahead of Record Date On 28th March

With a market valuation of Rs 430 Cr, Lorenzini Apparels Ltd is a small-cap company in the textile sector. The company Lorenzini Apparels Limited is involved in the production, design, and sale of ready-made garments. The registered office of Lorenzini Apparels Ltd, which was established in 2007, is located at C-64 Okhla Industrial Area, Phase-I, New Delhi, New Delhi, 110020. Having produced 242.98% in the year, Lorenzini Apparels is one of the multibagger stocks of Dalal Street in recent times. However, the focus on the stock is more by the market watchers as the Board of Directors today announced a major update regarding 6:11 bonus shares ahead of the record date on 28th March.

Lorenzini Apparels Bonus Shares Update

"Pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015, we would glad to inform you that Company has received the In-principle approval from National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) dated March 21, 2024 for issuance of Bonus Shares," said Lorenzini Apparels in stock exchange filings on March 21, 2024.

"We are in receipt of your application regarding in - principle approval for issue and proposed allotment of bonus equity shares in terms of Regulation 28(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. In this regard, the Exchange is pleased to grant in-principle approval only for issue and proposed allotment of 60967020 Equity shares of Re.1/- each (Post Sub-Division of Equity Shares) as bonus share in the ratio of 6 new equity share for every 11 existing equity share held in the Company subject to the Company fulfilling the following conditions:

1. Filing the listing application at the earliest from the date of allotment.
2. Receipt of statutory and other approvals and compliance of guidelines / regulations issued by the statutory authorities including SEBI, RBI, MCA, etc.
3. Compliance with all the guidelines, regulations, directions of the Exchange or any statutory authorities, documentary requirements from time to time.
4. Compliance of all conditions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as on date of listing, Compliance to the Companies Act, 1956 / Companies Act, 2013 and other applicable laws.
5. Submissions of documents as given in the further issue brochure (available on website www.nseindia.com).

The Exchange reserves its right to withdraw its in-principle approval at a later stage if the information submitted to the Exchange is found to be incomplete/incorrect/misleading/false or in contravention of any Rules, Bye-laws and Regulations of the Exchange, as per the SEBI (LODR) Regulations, 2015, Guidelines/ Regulations issued by statutory authorities, etc," said the company.

Lorenzini Apparels Bonus Shares Allotment Conditions

"We acknowledge receipt of your application regarding in-principle approval for issue and allotment of proposed Bonus equity shares to the shareholders in terms of Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015. In this regard, the Exchange is pleased to grant in-principle approval for issue and proposed allotment of not exceeding 6,09,67,020 Bonus equity shares of Re. 1/- each in the ratio of 6 (Six) new equity share for every 11 (Eleven) existing equity shares held in the Company subject to the company fulfilling the following conditions:

• Submission of listing application form for the new securities to be allotted and documents as per Format available on the website of BSE Ltd. under following link http://www.bseindia.com/static/about/downloads.aspx
• Payment of Additional listing fees on the enhanced capital, if applicable.
• Receipt of statutory and other approvals and compliance with guidelines issued by the statutory authorities including SEBI, RBI, MCA etc.
• Compliance with any change in the guidelines, regulations directions of the Exchange or any statutory authorities, documentary requirements from time to time.
• Compliance with all conditions of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 as on date of listing.
• Compliance with the Companies Act, 2013 and other applicable laws.
• Allotment of Equity Shares shall only be made in dematerialized form," the company further added in the filing.

Lorenzini Apparels Stock Split News

The company has also announced a sub-division of the face value of equity shares of the nominal value of Rs. 10/- each into 10 equity shares of nominal value of Re. 1/- each fully paid-up and for the purpose of the same Thursday, March, 28th 2024 has been fixed as the record date.

Lorenzini Apparels Financials

In the December 2023 quarter, the firm had net sales of Rs. 12.68 crore, which is a 4.26% rise compared to Rs. 12.16 crore recorded in the same quarter in 2022. Its net profit jumped by 1280.45% from Rs. 0.17 crore in Q3FY23 to Rs. 2.37 crore in Q3FY24. In the reporting quarter, its quarterly EBITDA of Rs. 3.97 crore was recorded, a 179.58% rise compared to Rs. 1.42 crore during the same period in the previous fiscal year.

Lorenzini Apparels Share Price Target

Lorenzini Apparels stock price looks bearish on the Daily charts with strong resistance at 457. A Daily close below support of 405 could lead to 347 in the near term, said AR Ramachandran from Tips2trades.

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