Shakti Pumps Share Price Locked In Upper Circuit As Stock Trades Ex-Bonus

Shakti Pumps India Ltd.'s share price jumped to its upper circuit limit as it traded without the value of its upcoming 5:1 bonus issue. The stock continued its rise following a one-day fall post its four-day rally, in which it had gained nearly 13%.

The company has fixed Monday, Nov. 25 as the record date to determine shareholders eligible for the bonus issue, it said in a Nov. 11 exchange filing.

In its board meeting on Oct. 7, the company recommended issue of bonus shares in the ratio of 5:1. This means five new fully paid up equity shares of Rs 10 each will be allotted for every one existing fully paid up equity share held by eligible shareholders on the record date.

The scrip rose as much as 5% to Rs 826.75 apiece. It was locked in its 5% upper circuit, as of 10:24 a.m. This compares to a 1.7% advance in the NSE Nifty 50.

It has risen nearly 400% on a year-to-date basis. Total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 60.16.

The one analyst tracking the company has a 'buy' rating on the stock, according to Bloomberg.