On Thursday, January 2, Gujarat Toolroom’s shares stayed stuck in their 5 per cent upper circuit for the second straight session after the firm announced that a board meeting would be held to discuss the possibility of issuing bonus shares in a 5:1 ratio. During the trading day on Wednesday, the news was made.
According to a regulatory filing, the company’s board meeting is set for Monday, January 6, 2025.
In its filing, Gujarat Toolroom stated, “We wish to inform you that a meeting of the Board of Directors of Gujarat Toolroom Limited is scheduled to be held on Monday, January 6, 2025, to consider and approve the proposal for issuance of bonus shares in the ratio of 5:1 (five bonus equity shares for every one equity share) to the eligible equity shareholders of the Company as on the proposed record date by capitalisation of securities premium, subject to the approval of the shareholders of the Company.”
This will be the company’s first-ever bonus share issuance, according to BSE data, which will be a major milestone for its shareholders.
Gujarat Toolroom reduced the face value of its shares from ₹10 to ₹1 through a stock split last year, making the stock more affordable for individual investors. Furthermore, the business raised ₹50 crore in October 2024 at an issue price of ₹11.50 per share through a Qualified Institutional Placement (QIP). Institutional investors, such as Zeta Global Funds and Eminence Global Fund PCC Trade Fund, expressed a great deal of interest in this fundraising campaign, demonstrating their strong belief in the company’s potential for future expansion.
Stock Price Performance
During intraday trading today, the stock hit its 5per cent upper circuit at ₹18.08, showing strong buying activity. Even with this increase, the stock is still selling at a substantial 6per cent discount to its 52-week high of ₹45.97, which was reached in March 2024. It has, however, recovered well, rising 60% from its 52-week low of ₹10.78, which was reached in August 2024.
The stock’s remarkable gain of more than 12 per cent over the last three years highlights its long-term potential, even though negative returns of more than 54 per cent over the last year reflect volatility and difficulties. This sharp increase demonstrates how the company’s strategic initiatives—such as its successful QIP and stock split—have acted as growth accelerators.
