Multibagger Textile Stock Announces Bonus Share In 1:10 Ratio

Shubham Polyspin Ltd has announced bonus shares in the ratio of 1:10 which implies that shareholders will be issued 1 bonus share for every 10 shares that they hold.

Shubham Polyspin came into existence in 2012. The small-cap company operates in textile sector. Currently, it is producing 3000 MT of Polypropylene Multifilament Yarn per annum. It has a market capitalization of Rs 228.94 crore at the time of writing the story. Check key takeaways below:

What Is Bonus Share?

These are additional shares given to the existing shareholders without any extra cost, on the basis of the number of shares that a shareholder holds. Bonus shares are company's accumulated earnings which are not given out in the form of dividends but are converted into bonus shares of free shares.

Shubham Polyspin Ltd Board Recommends Bonus Shares

The board of directors of the company has stated in its BSE filing, "Recommended the issuance of 1 (One) bonus equity share ofRs. 10/- each fully paid up for existing 10 (Ten) Equity Shares ofRs. 10/- each by utilising Rs. 1,10,20,000/- out of part of the Credit balance of Profit & Loss Account outstanding and as reflected in the Financial Statements of the Company as on 31 st March, 2022."

It has also announced that it will increase in the Authorised share capital of the Company from Rs. 12.01 Crores to Rs. 13.01 Crores c) divided into 1,30,10,000 Equity share ofRs. 10/- each.

Shubham Polyspin Ltd To Explore Possibilities Of Expansion

The company has also announced that it will explore the possibilities of expansion of overall production capacity and/or increase in production of Twine PP Thread in a phased manner.

Shubham Polyspin Ltd Stock Outlook

The current market price of the stock is Rs 207 apiece with a 52-week high at Rs 315 and 52-week low at Rs 115 apiece. The stock has fallen 4.99% intraday.

Shubham Polyspin Ltd Market Capitalization

The company has a market capitalization of Rs 228.94 crore.

Shubham Polyspin Ltd Return

The stock has a given a return of 33% in 3 months, 42% in 1 year, and 847% in 5 years. It has fallen 20% in 1 month.

Shubham Polyspin Ltd About

Over a period of 8 years, Shubham Polyspin Ltd has become a much sought-after brand in the PP yarn sector and as polypropylene manufacturers across the globe, according to its website. Shubham Polyspin is an experienced manufacturer of polypropylene products like PP yarn, narrow fabrics etc.