At record high! Jindal Worldwide shares surge 4% on bonus issue announcement

Jindal Worldwide's shares rose 4% to a record high of 463.90 after announcing a 4:1 bonus share issuance. The board approved the proposal on January 7, 2025, with shares expected to be credited by March 6, 2025. The company plans to amend its capital structure accordingly.

Pranati Deva
Published8 Jan 2025, 09:44 AM IST
At record high. Jindal Worldwide shares surge 4% on bonus issue announcement
At record high. Jindal Worldwide shares surge 4% on bonus issue announcement

Shares of Jindal Worldwide surged 4 percent on Wednesday, January 8, reaching a record high of 463.90. The rally followed the company’s announcement of a bonus equity share issuance in a 4:1 ratio, granting shareholders four fully paid-up equity shares of 1 each for every one existing share held.

This development comes after the board of directors approved the proposal on January 7, 2025, recommending it to shareholders for approval via a postal ballot process.

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Details of the Bonus Issue

The bonus shares will be issued from the company’s free reserves and/or securities premium account as of March 31, 2024.

Jindal Worldwide has stated that shareholders will be notified separately regarding the postal ballot notice and the record date for eligibility. The bonus shares are expected to be credited or dispatched by March 6, 2025, adhering to the timeline of two months from board approval.

In tandem with the bonus issue, the company plans to increase its authorised share capital and amend the capital clause in its memorandum of association to reflect the changes. Upon issuance, the company’s paid-up share capital will increase from 20.05 crore (comprising 20,05,20,400 shares) to 100.26 crore, consisting of 100,26,02,000 fully paid-up equity shares.

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Stock Price Trend

The announcement pushed the smallcap stock to a 52-week high of 463.90. The smallcap stock has rallied 73 percent from its 52-week low of 268.00, recorded in January 2024.

Jindal Worldwide has seen a remarkable 44 percent gain over the past year. Notably, in January 2025 alone, the stock has added over 15 percent, building on a 25 percent rise in December and a 3 percent increase in November.

Founded in 1952 and part of the 18,000 crore BC Jindal Group, Jindal Worldwide is a major player in the steel industry. With two large factories in West Bengal, the company serves both domestic and international markets, exporting steel products to Latin America and the Far East. The company’s consistent performance and strategic initiatives, including the latest bonus issue, underscore its robust growth trajectory and commitment to shareholder value.

 

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First Published:8 Jan 2025, 09:44 AM IST

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