This stock has zoomed over 6000% in 1 yr; to mull stock split on Nov 18

BDL said the board will deliberate on issuing bonus shares of up to 10:8, consider a proposal for a stock split of up to 1:10 and will review the possibility of declaring a dividend of up to 100%.

Bharat Global Developers share price: Shares of Bharat Global Developers (BGDL) hit a new high of Rs 1,152.80, as the scrip was locked in 5 per cent upper circuit on the BSE in Thursday’s intra-day trade in otherwise a subdued market. 

 

The stock, locked in upper circuit for the ninth straight trading days, surged 55 per cent during the period. In 11 trading days, it soared 89 per cent from the level of Rs 610.10 on October 30.

 

A sharp rally in stock price of BGDL was seen after the company on November 7 announced that it has been awarded an infrastructure engineering order valued at Rs 120 crore from Reliance Industries. The contract is to be executed within six months.

 

 

The order involves the design, engineering, and construction of a full-fledged high capacity fluidized catalytic cracker (FCC) unit. This project highlights BGDL’s expertise in delivering advanced refining technologies that meet high standards of efficiency, environmental compliance, and operational safety, the company said.

 

In one year, the market price of BGDL has zoomed 6,078 per cent from level of Rs 18.66 on the BSE. In comparison, the BSE Sensex has rallied 18 per cent during the same period.

 

Meanwhile, BGDL on Tuesday informed that the board of directors of the company is scheduled to meet on November 18 to consider and approve a proposal for issue of bonus shares and sub-division/ split of equity shares. The board will also consider the proposal of interim dividend.

 

BDL said the board will deliberate on issuing bonus shares of up to 10:8. If approved, shareholders would receive up to 8 additional shares for every 10 shares held. This proposal reflects BGDL's robust reserves and is intended to reward loyal shareholders by increasing their holdings at no extra cost, underscoring our confidence in the company’s growth outlook, the company said.

 

The board will consider a proposal for a stock split of up to 1:10, i.e. from face value of Rs 10 to Re 1. The objective of the stock split is to reduce the share price per unit, thereby making BGDL shares more accessible and affordable to a broader range of investors. By increasing the number of outstanding shares, this move is expected to improve trading liquidity and marketability of BGDL's shares.

 

As on September 30, 2024, BGDL had 101.26 million total outstanding equity shares. Of these, 99.53 per cent or 100.77 million shares are held by the resident individual investors, the shareholding patter data shows.

 

BGDL also said that the Board will review the possibility of declaring a dividend of up to 100 per cent. This proposal, if approved, would offer a significant return on investment to shareholders, demonstrating BGDL's commitment to returning profits and highlighting the company’s strong financial position and consistent cash flow, it added.

 

Currently, BGDL is trading in the ‘XT’ group. The exchange classifies equity securities of companies that are only listed/traded at BSE and satisfy certain parameters into separate sub-segments called "X", and "XT". At the time of review any securities falling in the Trade-for-Trade segment ('DT' or 'T' groups) are classified under the "XT" sub-segment.

 

Until 12:23 PM, as many as 103,000 equity shares have changed hands and there are pending buy orders for 208 shares on the BSE, the exchange data shows.