1:2 Split, 1:1 Bonus:Once Rs 980 NBFC Stock has Split Into 2 Shares, Hits 20% Upper Circuits; Check New Price!

Non-Banking Financial Company (NBFC), Capri Global Capital turned ex-split and ex-bonus on Tuesday. On the ex-dates, the stock price touched 20% upper circuits. A day ago, Capri traded at a little over Rs 980, and now it's cheaper than the Rs 300 price level. That's the beauty of stock splits. Not just that, with these two corporate actions, investors' shareholding in Capri multiplies.

Capri Global Capital Share Price:

On BSE, Capri's share price ended at Rs 289.40 apiece, up by Rs 48.20 or 19.98%. This is the new 52-week high and 20% upper circuit after adjusting to the stock split and bonus issue.

Notably, when a stock touches an upper circuit, that means there were only buyers in it during the trading session. Hence, no sellers.

Capri turned ex-split and ex-bonus on March 5. On the previous day, the stock price stood at Rs 984.9 apiece on BSE.

Capri Global Capital Stock Split:

The company's equity shares having a face value of Rs 2, have been split to Rs 1 face value from March 5th onward. The stock split will increase the fully paid-up equity of CGCL from Rs 206.23 mn pre-split to Rs 412.46 mn post-split. The ratio of a stock split is 1:2, meaning 1 existing share is to be subdivided into 2.

The authorized share capital will be increased from Rs360mn to Rs720mn to accommodate the increase in paid-up equity capital.

The last split by the company was carried out in November 2016 from Rs10/- face value to Rs2/- face value.

For example, if you held 500 shares of Capri Global by March 4th. Today, your shares have been split into 1,000 as the number of shares doubles while the face value halves.

Capri Global Capital Bonus Issue:

A bonus issue in the ratio of 1:1 is the next big incentive for shareholders. The ratio means that one bonus share for every one fully paid-up equity share held by the shareholders. The Company shall utilize Rs 412.46mn from the balance in the securities premium account for bonus issuance. CGCL had Rs18,834mn in the securities premium account as of March 31, 2023.

Taking the same example of 1,000 shares after the stock split, an investor will receive another 1,000 bonus shares (1,000 X 1/1). This will take the total shareholding to 2,000.

Key factors on Capri Global Capital:

CGCL maintained AUM momentum with the consolidated AUM including co-lending AUM increasing 54% YoY and 8% QoQ to touch Rs133,621mn. Retail growth momentum during the quarter was driven by Gold (15% QoQ) and Housing (8% QoQ). Co-lending AUM stood at Rs11,948mn comprising 9% of consolidated AUM compared to 8% in Q2FY24 and 5% in Q3FY23.

CGCL has continued to build upon its co-lending partnerships in all three products with strong prospects building up in Gold Loan co-lending. The overall AUM growth was granular with live customer relationships increasing by 195K YoY to touch 300K.

As planned, CGCL paused the aggressive branch expansion post-Q2FY24 and right-sized headcount in some verticals leading to the onset of the anticipated softening course of its cost ratios. The cost-income ratio declined 392bps QoQ to ~63% in Q3FY24. In absolute terms, the operating expenses were unchanged QoQ at Rs2,200mn. This has offset the negative impact of 23bps QoQ spread compression with operating profit increasing by a robust 19% QoQ and 78% YoY to Rs1,296mn.

CGCL expects to benefit from a further softening of its cost ratios and spread stabilization going ahead.

Capri Global is a diversified Non-Banking Financial Company (NBFC) with a presence primarily across two key verticals - MSME Loans and Home Loans.