Defence Stock Set To Become Cheaper, 1:5 Split Approved: Shares Zoom 406% In 1-Yr

Small cap stock from the defence sector, Premier Explosives Ltd shares hit back-to-back 52-week high on April 18 and April 19, 2024. Last trading price of Premier Explosives share on BSE is Rs 2083.75 apiece. The Board of Directors of Premier Explosives approved stock split/sub-division of shares on April 19, 2024 in the proportion of 1:5 implying one share will be sub-dividend into 5 shares.

The record date for stock split will be intimated in due course. Premier Explosives shares witnessed rally of 1273% in last 3-years. Key details below:

Premier Explosives Approves Stock Split: As per the BSE filing of the company dated April 19, 2024, "The sub-division / split of existing 1 (one) Equity Share of face value of Rs.10 (Rupees ten only) each, fully paid up into 5 (Five) Equity Shares of face value of Rs. 2/- '(Rupees Two only) each, fully paid up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the Company to be sought by means of Postal Ballot. The Record Date for the purpose of sub-division/split of existing equity shares will be intimated in due course."

Premier Explosives Considered, Approved Fundraising: The BSE filing added, "raising of funds through issuance of instruments or security including equity shares or any other eligible securities by way of one or more public and/or private offerings including on a preferential allotment basis and/or a qualified institutions placement and/or rights issue and/or further public offering, in one or more of the tranches for an aggregate amount not exceeding Rs. 400 crores (Rupees Four Hundred Crores) in terms of the SEBI ICDR Regulations and/or any other permissible mode(s), in accordance with the SEBI ICDR Regulations and other applicable regulations, subject to necessary approvals including the approval of the shareholders of the Company and such other regulatory/statutory approvals as may be required."

Premier Explosives Share Performance & Return: The 52-week high price of Premier Explosives shares on BSE is Rs 2125.00 per share (as on April 19, 2024) and 52-week low price is Rs 396.05 per share (as on April 21, 2023), respectively. Premier Explosives Ltd shares have been rising for the last couple of months and giving rich returns to investors. Premier Explosives shares soared 51% in last 1-month, gave return of 64% in last 6-months, and surged 406% in last 1-year. In last 3-years, Premier Explosives stock soared 1273% and 2539% in last 10-years.

Premier Explosives Dividend History: Premier Explosives announced 21 dividends since September 3, 2001. In last 12 months, Premier Explosives announced an equity dividend amounting to Rs 1.70 per share. At the current share price of Rs 2083.75, Premier Explosives offers a dividend yield of 0.08%.

About: Premier Explosives Limited is a Rs.2600 million company established in 1980. Since inception it has been a research and innovation orieted company by manufacturing explosives and detonators with totally indigenous technology in 1980's and 1990's. In 2013, PEL started commercial-scale manufacture of detonators with Nickel Hydrazine Nitrate (NHN)as primary charge emerging as the world first to do so. Extending its research forte to defence products, in 2003 PEL forayed into development of solid propellants and today it is the only private entity in India manufacturing and supplying solid propellants for prestigious missiles like Akash, Astra, LRSAM, etc, according to BSE filing.

Disclaimer: The stock highlights the stock split, fundraising and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.