Maharashtra Seamless bonus issues and stock split: Amid weakness in the stock market, the stock of Maharashtra Seamless Ltd., a seamless pipe and tube maker, rose sharply on Thursday. Shares rose 9.62% on BSE during 52 weeks of trading. The new high was reached at Rs 910. In fact, in the board meeting to be held on October 17, the company will consider issuing bonus shares and stock split. The stock took a big jump on this news.
The stock of the company has been rising for the last seven days. During this time it has climbed 18.04%. Maharashtra Seamless informed in an exchange filing on Wednesday, October 12, 2022, that the bonus shares and existing equity shares of the company will be split at its board of directors meeting to be held on October 17, 2022.
Explain that a stock split increases the number of outstanding shares by issuing more shares to the existing shareholders. Stock split reduces the market price of individual stocks. However, there is no change in the market cap of the company. Meanwhile, bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.
315 crore dues paid
Maharashtra Seamless has cleared long term loan dues of around Rs 315 crore. The company said in a regulatory filing, it had availed of a long term loan from HDFC Bank Ltd in 2019 as part fund for the acquisition of United Seamless Tubular Private Limited.
Stock rose more than 60% in the year 2022
The share of Maharashtra Seamless has performed well this year and made its investors happy. The stock has gained 67 per cent so far in the year 2022. At the same time, it has increased by more than 90% in one year.
Maharashtra Seamless Limited (MSL) was established in 1988. The company manufactures seamless and ERW steel pipes and tubes. MSL is a flagship company of DP Jindal Group. Saket Jindal is the Executive DP Jindal and Managing Director of the company.