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Shakti Pumps Bonus Share: Solar pump major Shakti Pumps (India) Limited has announced bonus shares for shareholders. The company board on Monday (October 7) approved the proposal to issue bonus shares in the ratio of 5:1. Shakti Pumps started trading in the green, but due to selling in the market, the stock hit the lower circuit of 5 percent.
Bonus Shares: 5 shares instead of 1
Shakti Pumps told the stock exchange that the board has approved the proposal to increase the authorized share capital of the company from Rs 40 crore to Rs 190 crore. With this, the Board has approved the recommendation to issue bonus in the ratio of 5 new fully paid-up equity shares of Rs 10 each instead of the existing 5 new fully paid-up equity shares of Rs 10 each. The bonus shares can be credited to the shareholders' accounts on or before November 30, 2024.
Importantly, bonus issue is the process in which a company issues shares to its existing shareholders at no additional cost. Shares are usually issued in proportion to the number of shares a shareholder already owns. Shakti Pumps' consolidated net profit rose 9166% to Rs 92.66 crore in the April-June quarter. This profit was Rs 1 crore in the year-ago quarter. So in the June quarter the company's income has increased from Rs 113.60 crore to Rs 567.56 crore.
What is the company's business?
Shakti Pump was established in the year 1982. It is a big name in the pump industry. The company manufactures energy efficient stainless steel submersible pumps and motors. Its share in the domestic solar pump market is 30%. Solar pumps manufactured by this company work on solar energy. It is quite cheap and the company is getting a lot of work under PM Kusum Yojana. There is no fuel consumption in these pumps. The operating life is also very long. It is also environment friendly and easy to operate and maintain.
Shakti Pumps Share: 370% return in one year
Shakti Pumps stock has given multibagger returns to shareholders. The stock has declined 2 percent in the last one month. The stock is up 200 percent in the last 6 months and 320 percent so far this year. At the same time, the stock has given a return of 370 percent in the last one year and more than 740 percent in the last two years. The market cap of the company on BSE is Rs. 8,624 crores. The stock's 52-week high was Rs. 5,089 and 52-week low of Rs. Is 881. There was selling pressure in shares on Monday. The stock hit a lower circuit of 5 percent. The share closed at 4305.