Smallcap stock, Andhra Paper Limited has split into the ratio of 10:2 on September 11, 2024. The stock price fell more than 6% on its ex-date. This will be the second stock split by Andhra Paper in less than 25 years. However, investors who have held the stock for the longest run, are among top winners. If someone held 250 shares in Andhra Paper 24 years ago, their holding multiplies to a whopping 12,500.
Andhra Paper Share Price:
On NSE, Andhra Paper's stock price ended at Rs 110 apiece, down by 6.22% with a market cap of Rs 2,187.35 crore. Adjusting to the latest stock split ratio, Andhra Paper's new 52-week high and low are at Rs 134.98 and Rs 93.01 apiece respectively.
The stock's adjusted price-to-equity ratio on NSE is at 46.86x. The upper circuit and lower circuit limits are at Rs 140.75 and Rs 93.85 apiece.
Before the stock split, on September 11, Andhra Paper's share price stood at Rs 562.50 apiece. While its 52-week high and low before the latest split was at Rs 674.90 and Rs 465.05 apiece respectively.
Andhra Paper Stock Split:
On September 11, Andhra Paper turned ex-date for the stock split ratio of 1:5 or 10:2, meaning its 1 equity share having a face value of Rs 10 each is split into five new shares having a face value of Rs 2 each.
Eligible investors to receive the latest stock split adjustment in their portfolio, are those who are holding Andhra Paper shares by the end of the record date which is currently September 11.
Earlier, in January 2001, Andhra Paper first turned ex-split for a ratio of 1:10 or 100:10. Meaning, the face value of Rs 100 on 1 equity share was trimmed to the face value of Rs 10 each on 10 equity shares - hence 1:10.
Calculate Gains Of Stock Split:
If an investor had bought 250 shares of Andhra Paper before January 2001, then their portfolio would have multiplied to 2,500 shares (250X10).
Without any buying or selling, if these investors held 2,500 shares by the end of September 11, 2024, then it will multiply to 12,500 shares (2,500 X 5).
As per the NSE data, the periodic low of the year 2000 in Andhra Paper before any stock splits adjustment, was at Rs 385 apiece witnessed on May 23, 2000. The periodic high of that year was of Rs 785 apiece recorded on October 16, 2000.
Let's suppose, you bought 250 shares at Rs 785 high on October 16, 2000, then your investment value will be at Rs 1,96,250 only. This investment has grown to a corpus of Rs 16,87,250 as of September 11, 2024 (12,500 X new 52-week high after 1:5 stock split). It needs to be noted that this is just an example, and gains vary depending upon the number of shares held by investors including broking charges, and any tax implications.
About Andhra Paper:
Andhra Paper Limited is one of the largest integrated paper and pulp manufacturers in India. Established in 1964, the company produces writing, printing and copier papers for foreign and domestic markets. The company's production facilities are located at Rajahmundry and Kadiyam have a total production capacity of 240,000 TPA. The company employs around 2,500 employees.
However, Andhra Paper was earlier Paper Mills when it was incorporated.
As per the website, in 1921, Paper Mills was established as Carnatic Paper Mills Ltd. at Rajahmundry. During its initial years, the mill was not making any profits and was eventually shut down due to insolvency. In 1929, The Andhra Paper Mills Co. Ltd. was incorporated to take over the assets of Carnatic Paper Mills Ltd. After the formation of the State of Andhra Pradesh in 1953, the Andhra Pradesh Government took over Andhra Paper Mills. Its capacity at that time was 10 TPD.
In October 2019 the controlling stake in the Company was acquired from IP by West Coast Paper Mills Ltd. (WCPM). WCPM, a part of S.K. Bangur Group, is one of the oldest and largest producers of paper for printing, writing, and packaging in India. Established in 1955, WCPM is located at Dandeli in Uttara Kannada district in Karnataka. Consequently, the Company became a Subsidiary of WCPM.
In January 2020, the name of the Company was changed to Andhra Paper Limited which not only reflects the business of the Company but also brings back the old glory to the Company.
Click it and Unblock the Notifications
Sign in with Google