After rallying over 250% in 3 years this stock announces 1:1 bonus shares, FIIs stake up in Q3

With a market valuation of ₹1,764 Cr, Sirca Paints India is a small-cap company that operates in the consumer durables sector. India's leading producer of wall paint and wood coatings is Sirca Paints. For its eligible shareholders, the firm has declared bonus shares in a 1:1 ratio, and the Board has specified a record date in order to facilitate this.

“The Board has recommended the issue of Bonus Shares in the ratio of 1 :1 i.e. 1 (One) Bonus equity share of Rs.10/- each for every 1 (One) fully paid-up equity share of Rs. 10/- each held by the Members of the Company as on the Record Date, subject to approval of the Members of the Company. Information as per regulation 30 of SEBI (LODR) Regulations, 2015 is enclosed herewith. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Wednesday, May 11, 2023 as the Record Date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of Bonus Equity Shares in the proportion of 1 (One) Equity Shares of Rs. 10/-each for every 1 (One) existing Equity Shares of Rs. 10/- each, subject to the approval of Members, which is being obtained through Extra Ordinary General Meeting,” said Board of Directors of Sirca Paints India in a stock exchange filing.

The Board has also approved to increase in authorised share capital from ₹32 Cr to ₹60 Cr. Rs. 27,40,44000/- or twenty seven crore forty lacs forty four thousand only is total number of securities proposed to be issued or total amount for which the securities will be issued as bonus issue. The company also appointed M/s. Jatin Aggarwal & Associates, Practicing Company Secretaries as secretarial auditors of the company to conduct the Secretarial Audit for the financial year 2022-23. 

The firm reported a net income of ₹66.18 Cr for the quarter ended December 2022 as opposed to ₹54.56 Cr for the quarter ended December 2021. The company's net expenses were ₹52.01 crore in the third quarter of FY23 as opposed to ₹42.34 crore in the same quarter of FY22, and its EBIT was ₹14.17 crore as opposed to ₹12.22 crore in the same quarter of FY22. Sirca Paints India said that its net profit for the third quarter of fiscal year 23 was ₹10.53 Cr, up from ₹9.16 Cr in the same period of the previous year, and its EPS came in at ₹3.84, up from ₹3.34 in Q3FY22.

The shares of Sirca Paints India closed today on the NSE at ₹645.00 apiece level, up by 0.55% from the previous close of ₹641.50. The stock recorded a total volume of 1,00,879 shares compared to the 20-Day average volume of 34,016 shares. The stock touched a 52-week-high of ₹800.90 on (14-Dec-2022) and a 52-week-low of ₹402.35 on (26-May-2022). The stock has rallied 532.54% and 265% in 3 years. In the last 1 year the stock has rallied 42.71% and on a YTD basis it has fallen 4.76% so far in 2023. 

The firm revealed that 67.55% of its stake was held by promoters as of Q3FY23, followed by FII and DII stakes of 5.59% and 4.41%, respectively, and public ownership of 22.45%. According to Trendlyne data, the promoters' stake in Sirca Paints India remained unchanged at 67.55% in the December 2022 quarter, while FII/FPI increased their shareholding from 1.97% in the September 2022 quarter to 5.59% in the December 2022 quarter, saw an increase in the number of FII/FPI investors from 8 in Q2FY23 to 13 in Q3FY23 and institutional investors have lowered their stake from 24.59% in Q2FY23 to 10.00% in Q3FY23.