5:1 Stock Split In 3 Days: Rs 3,800 Defence Stock Hits New 52-Week High, Rises 30% In 4-Days Before Splitting

Defence company, Premier Explosives have been on a bull run for fourth consecutive trading session so much so that the stock surged by more than 30%. On June 18, the stock touched its 10% upper circuit and hit new 52-week high of Rs 3,880.30 apiece on BSE. Premier Explosives is a multibagger stock.

Premier Explosives has fixed June 21 as the record date for its stock split in the ratio of 5:1. This will also be the company's ex-split date as well. To be eligible for Premier Explosives stock split, investors should hold the company's stock by end of its record date in their demat accounts.

As per the regulatory filing, the sub-division / split of existing 1 (one) Equity Share of the face value of Rs.10 (Rupees ten only) each, fully paid up into 5 (Five) Equity Shares of the face value of Rs. 2/- '(Rupees Two only) each, fully paid up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the Company to be sought utilizing Postal Ballot.

Generally, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

Additionally, the company is looking to raise through the issuance of instruments or securities including equity shares or any other eligible securities by way of one or more public and/or private offerings including on a preferential allotment basis and/or a qualified institution placement and/or rights issue and/or further public offering, in one or more of the tranches for an aggregate amount not exceeding Rs 400 crore, as per the filing.

PEL has the widest range of products and technologies in the manufacture of Explosives & Accessories. These include Emulsion and Slurry explosives, LD cartridge explosives, Bulk Explosives, Small-dia non-permitted explosives, Permitted explosives, Cast Boosters, Pillow-packs for secondary blasting; Detonating Fuse of various core-loads, Plain detonators, Instantaneous Electric Detonators, Electric Delay Detonators, Permitted Detonators, Cord Relays and Amardet NoN-Electric Shock-tube Detonators.