Gujarat Toolroom Shares Locked In Upper Circuit As Board Mulls 5:1 Bonus Issue

Gujarat Toolroom Ltd.'s shares were locked in the upper circuit on Thursday after the company announced that its Board of Directors will meet on Monday, Jan. 6, to consider and approve a bonus issue in the ratio of 5:1.

This would entail issuing five bonus equity shares for every one equity share held by eligible shareholders, subject to shareholder approval and capitalisation of securities premium. The record date is yet to be announced. 

In April 2024, the company issued an interim dividend of Re 1 per share and it announced a stock split from Rs 10 to Re 1 in March 2023.

The plastic products manufacturer had earlier raised Rs 95.66 crore through a Qualified Institutional Placement on Dec. 27. The QIP saw shares being issued at Rs 13.30 per share, inclusive of a Rs 12.30 premium. Prominent institutional investors such as Bridge India Fund, Eminence Global Fund PCC – Trade Fund 1, Multitude Growth Funds Ltd., and Northstar Opportunities Fund VCC – Bullvalue Incorporated VCC Sub-Fund each acquired a 7.75% stake in the company.

Additionally, on Nov. 25, Gujarat Toolroom announced the successful execution of an order worth Rs 310 million for Reliance Industries. This brought the total value of orders completed for Reliance Industries in the current financial year to Rs 600 million.

Gujarat Toolroom stock rose as much as 4.99% during the day to Rs 18.08 apiece on the BSE. It has fallen 52.02% in the last 12 months. The total traded volume so far in the day stood at 5.9 times its 30-day average. The relative strength index was at 78.48.