Shakti Pumps (India) Ltd shares reached an upper circuit limit of 5% on Monday, hitting an intraday high of ₹4295.45.
This increase in buying is due to the company’s announcement about bonus shares.
Shakti Pumps has scheduled a board meeting for October 7, 2024, where they will discuss the proposal to issue bonus shares at a ratio of 5:1.
This means shareholders will receive five new shares for every existing share they own. The final approval for this proposal will depend on the shareholders.
Company Performance and Details
Shakti Pumps has shown impressive growth over the past five years, with shares rising by about 1500%.
According to the exchange filing, the record date for the bonus shares has not yet been announced.
Understanding Bonus Shares
Bonus shares are issued by companies to use their free reserves, which can increase earnings per share (EPS) and paid-up capital while reducing reserves.
These shares are given to shareholders at no extra cost, making them known as free shares. Investors must purchase the stock before the ex-date to qualify for bonus shares.
If they buy on or after this date, they will not receive the bonus shares. This will be the second time Shakti Pumps has issued bonus shares.
Company Ownership and Share Value
As of the end of June, the promoters of Shakti Pumps held a 51.58% stake in the company. Currently, shares of Shakti Pumps (India) Ltd are trading at ₹4295.45.
The stock has increased investors’ wealth significantly, gaining over 314% this year alone and 390% over the past year.
