THIS small-cap stock below ₹50 declares 5:1 bonus shares; do you own?

Gujarat Toolroom board, on Monday, approved 5:1 bonus issue, allowing shareholders five additional shares for every one share they own. However, the company further informed the exchanges that approval from members is still pending.

The bonus shares are likely to be credited on or before March 6, 2025, as per the filing.

This decision highlights the company’s dedication to rewarding its investors. The bonus shares will be issued by utilizing ₹116 crore from the securities premium account and retained earnings, leading to a substantial rise in the company’s paid-up share capital, from ₹23.20 crore to ₹139.23 crore.

Apart from the bonus matter, Gujarat Toolroom has authorized an increase in its share capital from ₹100 crore to ₹140 crore. This move demonstrates the company's forward-thinking strategy for growth and its preparedness to take advantage of expansion prospects.

These actions are supported by Gujarat Toolroom’s exceptional financial performance, which has played a key role in boosting investor confidence. The company posted an impressive 1,016 per cent year-on-year growth in quarterly net profit, coupled with a 72.65 per cent rise in quarterly sales. These results demonstrate Gujarat Toolroom’s strong operational efficiency and its capacity to expand in response to increasing market demand.

Gujarat Toolroom QIP

Recently, Gujarat Toolroom Ltd. (GTL) successfully raised ₹95.66 crore through a Qualified Institutional Placement (QIP), allotting stakes to prominent institutional investors like Bridge India Fund, Eminence Global Fund, and Multitude Growth Funds Limited, among others.

This robust support from institutional players reflects their confidence in Gujarat Toolroom's strategic vision, operational strength, and growth prospects.

Strategically, Gujarat Toolroom is positioning itself as a frontrunner in several high-growth industries. The company's initiative to develop a hybrid energy power plant in Gujarat highlights its dedication to clean energy, with plans to incorporate solar, wind, and other renewable energy sources.

Earlier this year, the company revealed plans for a pioneering Hybrid-Green Energy Power Plant project, poised to reshape the energy landscape.