4:1 Bonus Issue: Industrial Products Stock Hits 10% Upper Circuit On Bonus Share Update

Small Cap company operating in Industrial Products sector Salasar Techno Engineering (STEL) shares hit 10% upper circuit in trade today after the company informed via its BSE filing about its upcoming meeting of Board to make the allotment of Bonus Shares to all the eligible shareholders. The meeting of Board of Directors will take place on February 3, 2024 to consider and approve financial results along with allotment of bonus shares. Salasar Techno Engineering shares rallied 101% in last 1-month only and zoomed 193% in last 1-year only. Check details below:

Salasar Techno Engineering To Consider Financial Results, Allotment of Bonus Shares: As per the BSE filing of Salasar Techno Engineering dated January 29, 2024, "the meeting of the Board of Directors of the Company is scheduled to be held on Saturday, February 03, 2024 to transact the following businesses:

1. to consider, approve & take on record the Standalone & Consolidated Unaudited Financial Results of the Company for the quarter/Nine months ended 31st December, 2023;

2. to make the allotment of Bonus Shares to all the eligible shareholders, who holds shares on the already intimated Record Date i.e. 1st February, 2024. Bonus Shares shall be allotted in the ratio of 4:1 (4 new bonus Shares for every 1 existing equity shares) as all necessary approvals already been obtained."

Salasar Techno Approves Fund Raising: As per the exchange filing of the company dated January 25, 2024, "Board of Directors of the Company in their meeting held on today i.e. Thursday, January 25, 2024 considered and approved fund raising of Rs 8,064 million to accelerate the business growth further and to augment the long-term financial resources of the Company, fund raising by issuing the following securities, subject to approval of shareholders and other regulatory authorities, as may be applicable in accordance with the provisions of Section 42 and Section 62(1)(c) of the Companies Act, 2013, as amended ("Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, and Companies (Share Capital and Debentures) Rules, 2014 as amended ("Rules"), Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations") and other applicable laws, regulations, guidelines and rules."

Salasar Techno Shares Outlook & Return: The 52-week high price of Salasar Techno is quoted at Rs 28.19 apiece and 52-week low price is quoted at Rs 7.20 apiece, respectively. Its market capitalisation is Rs 4170.47 crore. Salasar Techno shares soared 178% in last 3-months only, rose 193% in last 1-year, jumped 438% in last 2-years, and offered return of 786% in last 3-years. In last 5-years, the scrip rose 895%.

Salasar Techno Bonus Issue: As per the exchange filing of Salasar Techno dated Jan 18, "Board of directors in their meeting held today dated January 18, 2024 has fixed Thursday, February 1, 2024 as the Record Date for the purpose of ascertaining the eligibility of shareholders for entitlement of bonus shares in the ratio of 4:1 i.e. 4 (Four) new fully paid-up bonus equity share of Rs.1/- (Rupees One only) each for every 1 (One) existing fully paid-up equity share of Rs.1/- (Rupees One only) held on Record Date subject to the approval of shareholders is being obtained through the postal ballot notice dated December 20, 2023, last date for the remote e-voting of postal ballot will be Saturday, January 20, 2024 (05:00 P.M.)."

Salasar Techno Financials: The company for the quarter ended September 2023 announced a growth of 21% year-on-year (YoY) in its net profit to Rs 9.05 crore as compared to the net profit of Rs 7.51 crore in the similar quarter of last year. The company's net profit was announced at Rs 11.05 crore in the June 2023 quarter. It declared a surge of over 6% YoY in its revenue from operations to Rs 275.35 crore for the 2nd quarter of the current fiscal year as against Rs 258.78 crore in the corresponding quarter of the year-ago period.

Salasar Techno About: It is an Indian Infrastructure company that provides customized steel fabrication and EPC solutions to the global market. In the year 2006, Salasar started out as a tower manufacturer. Tower manufacturers rarely provided multiple solutions under one roof. Salasar sought to fill this gap by aspiring to become a one-stop shop for India's telecom giants by carrying out engineering, designing, procurement, fabrication, galvanization and EPC under one roof. It has expanded its range of products and services to encompass all the infrastructural needs of a rapidly developing nation, according to its official website.

Disclaimer:

The stock just highlights shares rally in trade today 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 ay losses. Please consult a professional advisor.