After a 1,400% rally, this multibagger will turn 1 share into 100! Here’s how

New Delhi: Microcap textile maker Alstone Textiles (India), which has been consistently hitting the upper cycle, announced one of the biggest bonuses in the Indian stock market, along with a sub-dividend share.

The board announced a stock split in the ratio of 9:1 and a stock split in the ratio of 1:10. The company’s board approved both corporate actions, the company said in an exchange filing.

This means that every eligible shareholder will get 10 shares of face value of Re 1 each, for every share they hold of face value of Rs 10 each, from the specified date of registration.

Pursuant to this, the company has also announced the issue of nine compensatory shares of nominal value of Re 1 each for each share held by investors of nominal value of Re 1 as per the disclosed data.

This means that an eligible shareholder will get 100 equity shares of face value of Re 1 each for every share held by him of face value of Rs 10 each after the operation. The company has decided December 3, 2022 as the registration date.

After the announcement, shares of Alstone Textiles (India) rose 5%, locking in a buyer’s cycle at Rs 235.5. The certificate stood at Rs 224.30 on Thursday. Alstone Textile has delivered multi-bale returns for investors, with shares up 175% in the past month, with the counter up 1,400% since August 24.

Formerly known as Shalini Holdings, Alstone Textile, a 37-year-old company, is a debt-free material and investment company. The small-cap company posted a net profit of Rs 8 crore in the September 2022 quarter, down from Rs 1 crore in the June 2022 quarter.

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