A-1 Limited Jumps 5% After It Announces Proposal For 3:1 Bonus Issue and 10:1 Stock Split

Ahmedabad, November 25: A-1 Limited’s share price is witnessing heavy investor demand today after it announced proposals for a bonus issue and a stock split. As of 10:25 AM, A-1 Limited shares were up by 5%, or 115.85 points and were trading at ₹2,433.10. The traded volume for the A-1 Limited stock stood at 29.42 thousand shares, with the company’s market cap at ₹2,538 crore. The shares have their 52-week high at ₹2,433.10 and their 52-week low at ₹351.20.

A-1 Limited (BSE: 542012) is an Indian company historically known for its primary business in the wholesale trading and logistics of industrial acids and chemicals. It supplies a wide range of chemical products, including Nitric Acid, Sulphuric Acid, Hydrochloric Acid, and Methanol, to various industrial sectors such as Chemical, Textile, Steel, Aluminium, Pesticides, and Petro Refineries. The company has recently announced a major strategic diversification into the Clean Mobility/Electric Vehicle (EV) sector. The company was established in 2004, and is headquartered in Ahmedabad, Gujarat.

Bonus Issue: 3 for 1:

The company’s board has proposed issuing three bonus equity shares for every one share held. The ratio for the bonus issue is proposed to be 3:1. Eligible shareholders will receive 2 additional shares for every 1 share they hold.

Stock Split: 1 Share into 10:

The company’s board has approved the subdivision of shares of face value of ₹10 each into face value of ₹1 each. The ratio for the stock split is proposed to be 10:1. Eligible shareholders will receive 9 additional shares for every 1 share they hold.

Increase in Authorised Capital

The company’s board has proposed raising its authorised share capital from ₹20 crore to ₹46 crore. This is aimed at expanding its business and higher equity issuance requirements.

Investment in A-1 Sureja Industries

The company has increased its stake in its subsidiary A-1 Sureja Industries from 45% to 51%, valuing the subsidiary at ₹100 crore.

Investor Takeaway

The proposals of bonus issue, stock split, and the increase in its authorised share capital are aimed at simplifying the company’s overall structure. The bonus issue and stock split will improve liquidity and attract more investors as the share price will be reduced. Furthermore, the investment in its subsidiary will help contribute to its revenue and potential profits in the coming quarters. The proposals are now awaiting shareholder approval. For now, the announcement has boosted investor demand, leading to a share price rise.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/2a59d770-735e-4a7e-96db-315c8dcd6c9d.pdf

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