Amitabh Bachchan Portfolio Stock Announces 1:7 Bonus Shares: Do You Own?

With a market valuation of Rs. 893.66 Cr., D P Wires Ltd. is a small-cap company operating in the iron and metal industry. D. P. Wires Limited is a leading manufacturer of specialised LRPC Strands, steel wires, and geomembrane sheets and is promoted by the DP Wires Family and is based in Ratlam, MP. The firm can now manufacture 50,000 MT of steel wire yearly, and it plans to eventually reach the 70,000 MT target.

Steel Wire, Low Relaxation Pre-stressed Concrete Strands, and Normal Relaxation Pre-stressed Concrete Wire and Strands are among the premium products that D.P. Wires Limited manufactures in accordance with national and international standards. Bonus shares in the ratio of 1:7, or 1 equity share with a nominal value of Rs. 10 for every 7 equity shares with a nominal value of Rs. 10 as of the record date, have been authorised by the company's board of directors.

"The meeting of Board of Directors of the Company convened today i.e., Friday, September 29, 2023 considered and approved the following agendas: 1. To increase the Authorized Capital of Company of the Company subject to approval of the Shareholders at the Extra Ordinary General meeting, to Rs. 18 Crores (Eighteen Crores Rupees Only). 2. To Issue Bonus shares in ratio of 1 new equity share against 7 equity shares held on record date to the eligible shareholders of the company. The Record Date for the said purpose will be informed to the stakeholders in due course," said D P Wires in a stock exchange filing.

On a standalone basis, the company recorded a net sales of Rs 265.74 crore in the June 2023 quarter which is a growth of 32.59% from Rs. 200.42 crore in the June 2022 quarter. Its net profit jumped by 45.97% to Rs. 11.11 crore in the first quarter of FY24 from Rs. 7.61 crore, and its EBITDA increased by 49.56% to Rs. 17.14 crore from Rs. 11.46 crore in the same period of FY23. D P Wires' earnings per share (EPS) rose from Rs. 5.61 in Q1FY23 to Rs. 8.19 in Q1FY24.

On Friday, the shares of D.P. Wires closed on the NSE at Rs 658.30 apiece up by 0.43% from the previous close of Rs 655.50. The shares of the company made a 52-week-high of Rs 724.95 on (27/09/2023) and a 52-week-low of Rs 330.30 on (23-Dec-2022), indicating that at the current market price, the shares of D.P. Wires are trading 9.19% below the 1 year high and 99.30% above the 1 year low.

The stock price climbed from Rs 71 to the current market price during the past five years, resulting in a multibagger return of 857%. The stock price soared from Rs. 60 to the present market price during the past three years, resulting in a multibagger return of 946 per cent. The stock has gone up by 46% during the past year, and YTD, it has appreciated by 57.70% so far in 2023. During Q1FY24, the company reported promoters' shareholding of 74.75%, FIIs stake of 0.21%, and public stake of 25.03%. As per the shareholding pattern of D.P. Wires available on Trendlyne for the April to June 2023 quarter, Bollywood superstar Amitabh Harivansh Rai Bachchan held 281,112 equity shares of the company which is 2.07% of the total paid-up capital of D.P. Wires.