Up 750% In 3 Years; 1:1 Bonus Issue: This Multibagger Stock Approves Allotment Of 29.48 Lakh Shares

JTL Industries has garnered attention with a nearly 2% surge in its shares, now trading at Rs 260 per share on the National Stock Exchange (NSE). The catalyst behind this movement is the recent approval by the Securities Issue and Allotment Committee of the Company for the allotment of 29,48,555 fully paid equity shares, valued at Rs 2 each. This decision follows the conversion of warrants and the subsequent allotment of bonus shares.

The company's press release on February 29 detailed the committee's approval, stating, "This is to inform that the Securities Issue and Allotment Committee of the Company, in its meeting held today i.e. 28.02.2024, inter alia, has considered and approved the allotment of 29,48,555 fully paid equity shares of the face value of Rs. 2/- each, pursuant to conversion of warrants into said equal number of equity shares to the following Allottee belonging to Non-Promoter/Public Category, upon receipt of balance 75% of the issue price from it."

Post this conversion, the allottees are entitled to 29,48,555 bonus shares in a 1:1 ratio, resulting in a substantial increase in the Issued, Subscribed, and Paid-up Equity Share Capital of the Company to Rs. 35,40,21,660. These shares will rank pari-passu with the existing Equity Shares of the Company, signalling positive developments in JTL Industries' capital structure.

On February 4, the company announced the approval of 2.50 crore fully convertible warrants by the Securities Issue and Allotment Committee. These warrants were allotted on a preferential basis at an issue price of Rs 270 per warrant. The allotment involved both "Promoter/Promoter Group" and "Non-Promoter/Public Category," emphasizing a balanced approach to equity distribution.

JTL Industries had earlier declared 1:1 bonus shares in Q2FY24, setting September 7, 2023, as the record date. This strategic move laid the foundation for the subsequent developments, including the recent surge in share prices and the committee's approval for additional equity.

Notably, the financial health of JTL Industries is robust, with a reported 47% rise in net profit at Rs 30.18 crore in the third quarter ended December 31. This surge represents a significant jump from the profit of Rs 20.49 crore posted in the October-December period of the preceding fiscal year. The total income also witnessed a substantial increase, rising to Rs 568.33 crore from Rs 344.42 crore in the year-ago quarter.

The positive momentum for JTL Industries is not confined to its financials; the company's stock witnessed buying interest on January 2 after the announcement of a business update for the September to December 2023 quarter. Despite weak stock market sentiments, JTL Industries' share price opened upside at Rs 245.10 apiece on NSE and reached an intraday high of Rs 253 per share, marking a new lifetime high on NSE.

JTL Industries reported its highest-ever quarterly sales volume of 1,00,905 MT, showcasing a robust growth of around 76% over Q3 FY23. This growth is attributed to healthy demand for its structural steel tubes and pipes in both domestic and international markets, primarily in the infrastructure and industrial sectors.

Additionally, the company recorded a noteworthy increase in the volumes of value-added products, reaching 19,789 MT for Q3FY24. This reflects a remarkable YoY growth rate of 35.39%, surpassing the sales volume of 14,616 MT recorded during Q3 FY23. Despite a slight impact on the Galvanization facility due to scheduled maintenance, the company swiftly addressed the requirements, aiming to recover the lost volumes in the upcoming quarters.

In terms of the 9MFY24 performance, JTL Industries achieved its highest-ever sales volume of 2,59,933 MT, surpassing the FY23 sales volume of 2,40,316 MT. This growth of 62.32% compared to 9M FY23 demonstrates the company's ability to scale significant milestones.

Looking ahead, JTL Industries is set to embark on a transformative journey with a mega capacity augmentation project in Maharashtra. This strategic move aims to substantially boost the company's manufacturing capacity, facilitating the expansion and diversification of its product portfolio. The project includes additional production lines, an enhancement of capabilities to manufacture galvanized, pre-galvanized, and color-coated products, and strengthening competitiveness through both forward and backward integration.

JTL Industries plans to raise Rs 1,310 crore through various routes, including Qualified Institutional Placement (QIP). The promoter and promoter group will contribute Rs 540 crore, the public and non-promoter group will contribute Rs 270 crore, and the remaining Rs 500 crore will be garnered through the QIP route.

Over the past year, JTL Industries stock has witnessed gains of more than 65%, showcasing its resilience in the market. In the last three years, the stock has delivered returns of over 750%, a testament to its vision, operational excellence, and strong financial performance.