Mega mulibagger stock of 2024, Diamond Power Infrastructure Ltd, has announced its first-ever stock split in the ratio of 1:10. The stock has journeyed from merely Rs 157 levels to a whopping Rs 1,865 levels as of now, giving more than 1,102% returns in less than 10 months of 2024. During a split, the company's liquidity improves while the stock becomes available at an affordable rate for both new and existing customers.
Diamond Power Infrastructure Share Price:
On BSE, after the market hours of October 18, Diamond Power stock ended at Rs 1,865.40 apiece, up by 3.5% with a market cap of Rs 9,830.12 crore. During the session, the stock touched a new 52-week high of Rs 1,892.85 apiece.
Diamond Power stock's weekly gains are around 19.56% on BSE, while its monthly performance is up by 35.82% so far. In six months, the stock rallied by 196.38%. But year-to-date, the stock has skyrocketed by a mind-boggling 1,102.04%. Diamond Power stock was at Rs 157.15 apiece at the start of January 2024.
Data from BSE showed that the stock's price-to-equity ratio is at 338.51x, while its return on equity is down by 2.88%.
Diamond Power Infrastructure Stock Split:
In its regulatory filing, on October 18, Diamond Power announced that its board has approved and recommended for Sub-division of the Company's 1 (One) Equity Share of Face Value of Rs. 10/- each into 10 (Ten) Equity Shares of Face Value of Re. 1/- each.
The stock split ratio is at 1:10.
Further, Diamond Power said, "The Record Date for Sub Division/ Stock Split shall be intimated in due course after taking approval of the Equity Shareholders of the Company in the Extra Ordinary General Meeting. "
The reason behind the split is that Diamond Power plans to enhance the liquidity in the capital market, while widening its shareholder base, and to make the shares affordable/ accessible to small/ retail in the Stock Market.
The company plans to complete the stock split action within 3 months from the date of Shareholders' approval.
This will be the first-ever stock split by Diamond Power. Also, the stock split comes after the company's last corporate action in 2013. The company rewarded investors with a 1:3 bonus issue in August 2013, followed by a dividend payout of Rs 1 per share in September of that year.
Calculate Investors Gains:
Let's suppose, if investors had invested Rs 5,000 in Diamond Power at Rs 157 at the start of January 2024, then they would have 19 shares of Diamond Power. Before the stock split, the current gains of 1,102.04% resulted in a corpus of Rs 60,102 as of now.
After the stock split, and if the investor had continued to hold the shares as of the record date then the 19 shares would multiply to 190 shares (19 x 10).
Apart from the stock split, Diamond Power plans to invest in the equity shares of DICABS Nextgen Special Alloys Private Limited, the wholly owned subsidiary of the Company.
The investment includes manufacturing of wire rods, wire-drawing, rolling, processing, strip-drawing, rewinding, sheet Cables, and Conductors including all kinds of machinery, Equipment, Components, tools and accessories thereof.
Diamon Power is setting up 3 Rod mills with a| capacity to make 75,000 Mpta of AL 59 and other New Generation Aluminum Based Alloy,) this investment will substantially boost the Leadership position of the company in the next| Generation Conductors used for Power Transmission, the Project which is expected to| commence production in 3 phases starting from) Dec 2024 to Sept 2025, the estimated cost of the| Project is Rs. 50 crore, as per the filing.
About Diamond Power Infrastructure Ltd:
Starting as a fledgling ACSR conductor manufacturing facility in 1970, Diamond Power Infrastructure has emerged as India's largest and only integrated manufacturer of power transmission equipment and a turnkey services provider (EPC). It has in-house manufacturing facilities for cables, conductors and transmission towers.
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