1:3 Bonus Issue, 2nd December - Record Date; Engineering Stock That Rose 250% YTD, To Turn Ex-Bonus On Monday

Rajoo Engineers, a 2024 multibagger stock, is turning ex-bonus on Monday, December 2nd, 2024, and accordingly it will be in focus. The company is going to reward investors with second bonus share in less than 11 months. Rajoo Engineers stock is currently around Rs 365 and has skyrocketed by more than 250% on BSE.

During bonus issues, a listed company allots free additional shares to existing and eligible shareholders based on the number of shares owned. One of the key reasons for bonus issue is to distribute gains of accumulated earnings without paying cash to the shareholders. In short, bonus shares are free of cost. However, in case of bonus issue, the share capital reserves reduces, while money is moved to Share capital as new shares are issued.

To be eligible for bonus shares, investors must ensure to hold the respective stock in their demat account by endo f the bonus issue's record date. Let's find out the current share price, record date, and allotment of Rajoo Engineers upcoming bonus issue.

Rajoo Engineers Bonus Issue:

Last week, on Friday, Rajoo Engineers share price closed at Rs 364.80 apiece, up by 4.51% on BSE, with market cap at Rs 4,487.37 crore. The stock is nearing towards its 52-week high of Rs 443.90 apiece, while has surged multi-fold from its 52-week low of Rs 84.88 apiece.

The price-to-equity ratio is at 182.90x, while return on equity is at 18.59%.

YTD, Rajoo Engineers share price has soared by 250.16% on BSE. In the start of January 2024, the stock was merely at Rs 104.18 apiece on BSE.

For Example: If you bought Rajoo Engineeris shares for Rs 5,000 in the start of 2024, then your number of shares would be around 48 shares. By the end of November 30, 2024, your gains on investment would be 250.2%. This means Rs 5,000 bagged gains of Rs 12,510, taking the total corpus value to Rs 17,510. If these shares are still held by the end of the record date, then investors would be eligible to receive the new bonus issue benefits.

Rajoo Engineers Bonus Issue:

The company has fixed Monday, December 02, 2024, as the Record Date for the aforesaid Bonus Issue and in this regard, Bonus Equity Shares will be issued to the Equity Shareholders, whose names appear in the Register of Members/Beneficial Owners of the Company/Depositories as on Monday, December 02, 2024.

This time, Rajoo is rewarding investors with a bonus shares ratio of 1:3, meaning, 1 (One) Equity Shares of face value of Re. 1/- each for every 3 (Three) existing Equity Shares of the face value of Re. 1/- each held by the Shareholders of the Company.

This will be the second bonus issue by Rajoo Engineers in 2024. Earlier, the company rewarded investors with a bonus issue ratio of 1:1 and its ex-date was on August 8, 2024. Notably, in September 2024, the company turned ex-dividend for its final dividend of Rs 0.13 per share for FY24.

Also, the company has made a strategic leap with a Rs. 300 million investment in its Yantralaya, now upgraded with advanced 5-axis vertical multitasking machinery from Japan. This significant enhancement boosts Rajoo's production capacity by 40% while elevating precision, efficiency, and Total Quality Management (TQM) standards. This expansion enables Rajoo to meet the rising global demand for high-quality extrusion machinery with minimum human intervention during the set production and reduced dependency on manual processes.

About Rajoo Engineers:

Rajoo Engineers Limited, founded in 1986 and headquartered in Rajkot, has evolved into a prominent global player in blown films, and sheet extrusion lines. Through a dedicated focus on blown film, sheet extrusion lines, thermoformers and Extrusion Coating and Laminating Lines, the company has attained a prestigious market position. Driven by technology, Rajoo is renowned for its product innovations, world-class quality, state-of-the-art workmanship, enhanced energy efficiency, and sophisticated automation, distinguishing its offerings on a global scale.