Multibagger share declares bonus issue, stock split; gains over 150% in 1 year
The company is a smallcap stock and a multi-bagger. In a year, the stock has climbed by more than 150%. The stock is currently near its 52-week high.
PremiumRural-focused HFC, Star Housing Finance will issue bonus shares in the ratio of 1:1 and further carry a stock split in the ratio of 1:2. The company has fixed a record date for next week to determine eligible shareholders for the bonus issue and stock split. The company is a smallcap stock and a multi-bagger. In a year, the stock has climbed by more than 150%. The stock is currently near its 52-week high.
In a press release on Wednesday, Star Housing Finance announced receiving the members’ consent for a bonus issue at its shareholder’s meeting held on December 6. Also, the shareholders approved the proposal to split the company's shares.
Under the 1:1 bonus issue, the company will issue one new bonus equity share for every one existing fully paid-up equity share to shareholders. While a 1:2 stock split means that the company's one equity share with a face value of ₹10 each will be subdivided into two equity shares having a face value of ₹5 each.
Ashish Jain, MD of Star HFL said, "This action is consistent with our philosophy of creating sustainable & long-term value for our stakeholders. We thank our shareholders who have reposed trust in the company and the management team. Star HFL team looks forward to continue its growth journey to become a Systemically Important HFC as the first milestone."
The record date is fixed on December 16 for the purpose of bonus issue and share split.
Further, Kalpesh Dave, Head of Corporate Strategy added, “We have created an office network covering 40 districts in 5 operational geographies that are leading the AUM build-up. Our growth is backed by quality and risk framework akin to our target segment of EWS/LIG first-time home owners from semi-urban/rural areas."
Dave added, "Our net worth has crossed Rs. 100 crore courtesy three successful rounds of capital raise over the last 12 months. Liability franchise is growing hand-in-hand to complement the growth. The company looks to create sustainable ROTA for its shareholders through balance sheet growth. The corporate action of split and bonus is amongst the series of initiatives towards value creation for our shareholders."
Notably, Star Housing Finance will turn ex-bonus and ex-split on the same day as the record date due to their settlement type option of 'T+1'.
'T+1' settlement option means that an equity share bought or sold on let's say Monday will reflect in the Demat accounts of the investors in 24 hours.
Hence, Star Housing Finance's ex-date is December 16 as well.
Bonus issues are free additional shares that a listed company gives to their existing shareholders based on their number of shares free of cost. The corporate action is carried out to distribute gains of accumulated earnings without paying cash to the shareholders. The face value of bonus shares remains the same.
On the other hand, stock splits are already owned equity shares of a company sub-dividend into a much smaller size of equity shares. The sub-dividend makes the stock cheaper and increases the outstanding number of shares. The move is carried out to improve liquidity by breaking the stock into a smaller size. The face value of the stock reduces as per the ratio of the stock split.
On BSE, Star Housing Finance shares closed at ₹216.60 apiece up by 1.52%. The stock did climb to an intraday high of ₹222 apiece on Wednesday -- which was just a couple of rupees away from its 52-week high of ₹226.70 apiece.
In a year, Star Housing Finance shares have skyrocketed by a whopping 152.15% on Dalal Street. The stock was at ₹85.9 on December 7th last year.
So far in 2022, the shares have jumped by over 149% on D-Street till now.
Star HFL was formerly known as Akme Star Housing Finance Compan. It operates in rural/semi-urban geographies to provide housing finance assistance to first-time EWS/LIG home buyers for the purchase/construction of low-cost housing units.
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