2:1 Bonus Issue, 3,119% Up: After 1:10 Split, Steel Stock To Reward Free 26.33 Cr Bonus Shares; Record Date?

Iron and steel products maker, Alliance Integrated Metaliks is coming up with free bonus shares for its investors. Accordingly, this smallcap stock below Rs 75 will be in focus ahead. Alliance Integrated has given over 3,119% returns in its all-time performance. The bonus shares were approved in the meeting on June 1, 2024.

This will be Alliance Integrated's first ever bonus issue, which comes after splitting by 1:10 ratio in March 2022. The company has also never paid dividends yet!

Alliance Integrated Metaliks Share Price:

On BSE, the smallcap metal stock is at Rs 71.79 apiece on May 31, with a market cap of Rs 945.12 crore. The stock is near its 52-week high of Rs 73.99 apiece and has surged by a whopping 272% from its 52-week low of Rs 19.30 apiece.

YTD, the stock has soared by 93% on BSE. In a year, the stock rallied by 155.5%, while its 5-year performance is up by 963.56%. All-time gains are about 3,119.28% so far. The stock was at Rs 2.23 level on March 16, 2012.

Alliance Integrated Metaliks Bonus Issue:

In the board meeting of June 1, the company recommended the issue of Bonus Shares in the proportion of 2:1 i.e. 2 (Two) new fully paid-up bonus equity shares of Rs. 1/- (Rupees One only) each for every 1 (one) existing fully paid-up equity share of Rs. 1/- (Rupees One only) each.

The bonus issue will be rewarded to the eligible shareholders as on the Record Date (to be determined by the Board and to be intimated to the Exchanges in due course), subject to the approval of the members of the Company.

Further, Alliance Integrated said, that the Bonus Shares once allotted shall rank pari-passu in all respects and carry the same rights of the existing Equity Shares and shall be entitled to participate in full in any dividend and other corporate action(s), recommended and declared after the issue and allotment of such Bonus Shares.

As per the regulatory filing, the total number of securities proposed to be issued is 26.33 crore equity shares. However, the actual number of bonus equity shares to be issued will be determined based on the paid-up share capital as of the record date. On the face value of Rs 1 each, the amount for implementing bonus shares is Rs 26.33 crore.

The bonus shares will be issued out of the Securities Premium account/retained
earnings/ free reserves or any other permitted reserves/surplus of the Company of the Company available as of 31st March 2024.

The company plans to complete the bonus shares within 2 months from the date of the board's approval.

Alliance Integrated Metaliks:

Also, the board of the company has approved the reclassification of the Authorised Share Capital of the Company from Rs 100 crore, divided into 30 crore equity shares having a face value of Re 1 each, and 70 crore preference shares at Rs 10 face value each --- to Rs 100 crore divided into 45 crore equity shares and 5.5 crore preference shares.

About Alliance Integrated Metaliks:

AIML offers a fully integrated one-stop shop for Heavy Fabrication. The company has supplied critical structures to industries ranging from Power, Railways, Roads, Metros and Industrial and Residential. Some of their major clients are L&T, Tata Projects, AFCONS, Shahpoorji, APCO, and SP Singla.