Surya Roshni soars 9% on fixing Jan 1 as record date for 1:1 bonus issue

The company has fixed Wednesday, January 01, 2025, as the record date to determine the eligibility of shareholders for the issuance of bonus shares in the ratio of 1:1

Shares of Surya Roshni soared 9 per cent to Rs 610.45 on the BSE in Tuesday’s intra-day trade amid heavy volumes in an otherwise weak market ahead of the company's 1:1 bonus issue.

 

Surya Roshni has fixed Wednesday, January 1, 2025, as the 'Record Date' to determine the eligibility of shareholders for issuance of the bonus shares in the ratio of one new equity share for every one existing equity share held in the company.

 

At 11:27 AM, the stock was trading 8 per cent higher at Rs 603, as compared to the 0.25 per cent decline in the BSE Sensex. The average trading volumes on the counter had more than doubled, with a combined nearly 600,000 equity shares changing hands on the NSE and BSE.

 

However, thus far in the calendar year 2024, Surya Roshni share price has underperformed the market by falling 24 per cent, due to disappointing earnings. In comparison, the BSE Sensex has rallied 8 per cent during the same period.

 

Surya Roshni is the largest exporter of electric resistance welded (ERW) pipes, largest producer of ERW Galvanized Iron (GI) pipes and one of the largest lighting companies in India. Its consumer durable business offers a variety of fans and home appliances.

 

The company's steel pipes business experienced a sharp decline in HR steel prices, while dampened demand resulted in lower revenues. However, operational efficiencies helped mitigate losses arising due to price erosion. In the lighting and consumer durables segment, price erosion in LED products continued. But, a better cost management strategy and product mix improved the company's performance.

 

Surya Roshni's lighting and consumer durables segment faced some delays in project decisions due to the recent general elections, but a strong order book provides optimism for sustained performance. The professional lighting segment, backed by a healthy order book and scheduled project executions, is expected to contribute significantly to Q3FY25 numbers.

 

While demand in the API pipes segment remained subdued due to limited government tendering activity, the spiral pipes segment exhibited robust performance, supported by strong order inflows, particularly in the water pipe segment. The company's order book for spiral pipes remains healthy. Its spiral pipes plant at Malanpur (Gwalior), which is expected to commence operations in the coming month, has already secured a six-month order backlog, the management had said while announcing their September quarter results on November 14.

 

Meanwhile, export volumes for the company declined, primarily due to geopolitical tensions in key markets, notably the Middle East. Despite these challenges, the company's management remains confident in the potential for export recovery over the next six months, as demand stabilises both domestically and internationally.