Promotor Backed Multibagger Stock Announces 3:2 Bonus Share; Stock Price Gave 190 Per cent Returns in a Year
The stock price of the company has given multibagger returns of 190 per cent in the last year, while it has given whopping 952 per cent returns in the last 5 years.
VTM Limited announced the outcome of its Board of Directors meeting held on April 16, 2025. The Board approved a proposal for the issuance of bonus equity shares. The bonus shares will be issued out of the company's free reserves. The approved bonus issue ratio is 1.5:1. This means that 1.5 fully paid-up equity shares with a face value of Rs 1 each will be issued for every 1 fully paid-up equity share held by the shareholders on the record date. This ratio can also be expressed as 3:2, meaning 3 bonus shares for every 2 existing shares.
The details of the share capital before and after the bonus issue were also disclosed. Prior to the bonus issue, the share capital was Rs 4,02,27,600, consisting of 40,2,27,600 equity shares with a face value of Rs 1 each. Post-bonus issue, the share capital is expected to be Rs 10,05,69,000, comprising 10,05,69,000 equity shares of Rs 1 each.
DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, download the service details here.
The company has free reserves of Rs 180.77 Crores as of March 31, 2024. The amount of free reserves required for the bonus issue is Rs 6.04 Crores. The actual amount will be determined based on the paid-up share capital on the record date. The figures provided are audited. The estimated date for crediting or dispatching the bonus shares is within 2 months from the date of Board approval, which is by April 16, 2025. The record date for the bonus issue will be communicated separately, following shareholder approval.
About Company
Incorporated in 1951, VTM Ltd is in the business of weaving and caters to special fabric manufacturing in fine counts and complex specifications. VTM, part of the Thiagarajar Group, specialises in manufacturing grey weaving requirements and Greige & Processed Fabrics for export and domestic markets. The company offers speciality fabrics like Structured, Dobby, Plain, Twill, Satin, and Jacquard designs, with widths ranging from 38” to 144”.
The shares of the company are trading at Rs 203 per share and have a total market capitalisation of Rs 817 crore. The stock price of the company has given multibagger returns of 190 per cent in the last year, while it has given whopping 952 per cent returns in the last 5 years. The company has been maintaining a healthy dividend payout of 25.7 per cent.
Investors should keep eye on this micro-cap multibagger stock.
Disclaimer: The article is for informational purposes only and not investment advice.