By Malvika Gurung
Investing.com -- Shares of India’s largest gear manufacturer Bharat Gears (NS: BGRS ) skyrocketed 17.6% to Rs 163.95 apiece at 10:50 am on Tuesday, nearing its 52-week high of Rs 172.63 apiece.
The stock rallied as the company’s shares traded ex-bonus on Tuesday. It has fixed September 28 as the record date for determining shareholders eligible for the bonus issue.
The micro-cap company, in its 50th annual general meeting held on September 20 received its shareholders' approval for the issuance of bonus shares in the ratio of 1:2.
This means that eligible shareholders of the company will be given 1 fresh equity share for every 2 existing shares they hold, without any additional cost. The bonus shares will likely be paid to the eligible shareholders within two months from the board of directors’ date of approval on Aug 24, 2022.
The multibagger company has proposed to issue a total of 51,18,35 equity shares with a face value of Rs 10 each under the bonus shares. Bharat Gears is among the leading global suppliers of automotive gears and heat treatment furnaces.
After the bonus issue, the company’s share capital is estimated to exceed Rs 15.35 crore, compared to the present value of over Rs 10.23 crore.
Bharat Gears’ scrip has rallied a whopping 410% in the past 2 years.
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