Narmada Macplast Eyes Stock Split And Bonus Issue To Boost Liquidity

Narmada Macplast Drip Irrigation Systems Ltd has announced that its board will soon consider a proposal for a stock split and issuance of bonus shares, signaling a shareholder-friendly move aimed at enhancing market participation and liquidity. The decision is expected to be finalized in the upcoming board meeting.

 

Key Developments Under Review

 

- The company is evaluating a stock split to reduce the face value of its equity shares, making them more affordable for retail investors.

- A bonus issue is also on the table, which would reward existing shareholders by issuing additional shares free of cost.

- These corporate actions are intended to improve trading volumes and broaden the investor base, especially among small-cap enthusiasts.

 

Market Context And Performance Indicators

 

- Narmada Macplast’s share price has surged over 840 percent in the past year, reflecting strong investor interest and operational turnaround.

- The company recently declared a dividend for the first time in five years, indicating improved cash flows and management confidence.

- Its price-to-earnings ratio stands at 12.7, significantly below the sector median of 35.9, suggesting room for valuation expansion.

 

Strategic Outlook

 

If approved, the stock split and bonus issue could further energize the stock’s momentum and align with the company’s broader goal of democratizing ownership. Investors are closely watching the board’s decision, which may set the tone for future capital actions.

 

Sources: Economic Times, Moneycontrol, Ticker Finology, Sharekhan, Tickertape.