Multibagger Smallcap Stock Announces 1:10 Stock Split, Share Up 285% In 1 Yr

Sarda Papers Ltd., a BSE-listed penny stock surged by 285% in the last 1 year. Recently the company announced a rights issue and stock split, with a 1:10 split ratio. The company informed the stock exchange that the board has "Approved sub-division of equity shares of the Company from the existing One equity share of the face value of Rs. 10 each into Ten equity shares of the face value of Re. 1 each. On the last trading day, its share price closed at Rs. 16 a piece.

The Board decided to reclassify out of its authorized share capital of Rs.7,75,00,000, the 4,25,000 1% redeemable preference share of Rs. 100.00 each into 4,25,00,000 equity share of Re. 1 and subsequent increase the authorized share capital of the Company from Rs. 7,75,00,000 up to Rs. 49,00,00,000 of the Company and consequent alteration of Memorandum of Association of the company.

Additionally, the company informed that to raise fund for an amount not exceeding Rs. 45 crore through a Right Issue to the eligible equity shareholders of the Company as on the Record date. Additionally, On the board meeting, held on October 12, the company's board has decided to change name of the company from 'Sarada Papers Ltd.' to 'Tahmar Enterprises Ltd.'

Sarda Papers - stock performance on BSE

In the last 1 month Sarda Papers' share price gained by 9.97%, in the last 6 months its share price gained by 49.53%. Additionally, in the last 1 year its share price gained by 285.54%, making it a multibagger stock.

The 52-week high level of this stock is Rs. 16.07, and the 52-week low level of this stock is Rs. 3.99.

When a company's management decides to increase its number of outstanding shares, it can announce a stock split. By this, the stock's share price will fall and it will be more affordable for new investors.

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