The Board of Directors of Bharat Gears, India’s largest gear maker, on Wednesday approved issuance of bonus shares in the ratio of 1:2. The shares of the company witnessed good buying sentiment on the exchanges as they reached their 52-week high. Shares closed on a positive note. Bharat Gears is a multibagger as the shares have risen by over 230% in 2 years.
According to regulatory filings, the board approved the issue of bonus share Issuance of one equity share to the members of Bharat Gears in the ratio of 1:2 i.e. for every two existing equity shares held by the shareholders.
Bharat Gears will issue bonus shares to those shareholders whose names are entered in the register of members at the close of business on the record date of September 13, 2022.
This means Bharat Gears shares will become ex-bonus on September 12, before the record date.
Bharat Gears said in its filing, the bonus is out of free reserve ie capital redemption reserve.
Under the bonus issue, the company plans to issue 51,18,353 equity shares of face value 10 each overall approx 5.12 crores.
Before the bonus issue, the share capital of the company is currently approx. 10.24 crores. After the bonus issue, the share capital will be approx. 15.36 crores.
The company plans to issue bonus shares within two months from the date of approval by the Board of Directors on August 24, 2022.
Bonus Shares:
Generally, a listed company declares bonus shares as an incentive which can be called additional shares over the existing shares of the shareholders. The proportion of bonus issue is decided by the company.
In bonus shares, there are different dates like ‘record date’, ‘ex-date’ and ‘issue date’.
Simply put, the record date is the cut-off date on which the listed company makes its shareholding book notes. All shareholders holding shares in the company as on the record date shall be eligible for the benefit.
Meanwhile, the ex-bonus date is one day before the record date. Generally, to be eligible for bonus shares, an investor must purchase shares of the company at least a day or two before the ex-date.
On BSE, Bharat Gears is listed under ‘B’ group with settlement type of ‘T+2’. Under settlement option ‘T+2’, the shares purchased by you will be credited to your demat account after two days.
Bharat Gears Share Price:
On BSE, Bharat Gears shares settled 181.30 each, an increase of 1.77%. Shares touched intraday highs 185 each – a few bucks away from its 52-week high 190.20 each on the exchange. Overall, the shares have gained about 4% on the day.
The market cap of the company is approx. 185.59 crores.
In one year, the shares of Bharat Gears have gained over 55% on Dalal Street. shares were around 116.64 on 24th August last year. However, the shares jumped over 230 per cent in two years. Shares were down as on August 24, 2020 55.
As per Axis Direct Return Calculator, if an investor had invested 1 lakh in Bharat Gears for 24 months in August 2020, so the value of his investment has tripled so far. Investments since August 25, 2020 exceeded 1 lakh 3.3 lakh in Bharat Gears. if the investment was 5 lakhs, so the returns are approx. More than 16.50 lakh in 2 years. Feather 10 lakh investment, return over 33 Lakhs in Bharat Gears in 2 years so far.
Bharat Gears is a leading global supplier of automotive gears and heat treatment furnaces. The company manufactures a wide range of Ring Gears and Pinions, Transmission Gears and Shafts, Differential Gears and Gear Boxes primarily for the automotive industry.
In the first quarter of FY23, Bharat Gears reported a net profit of 4.30 crore less than 6.39 crore in Q1FY22 and 5.36 crores in Q4FY22. Company’s revenue climbed 183.97 crore in Q1FY23 as compared to 164.68 crore, however, decreased from Rs.164.68 crore in the corresponding period of the previous year 190.69 crore in Q4FY22.
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