Multibagger mid-cap stock hits 5% upper circuit as board to consider bonus share issue on January 8

Stock Market Today: Multibagger mid-cap stock Transformers and Rectifiers India share price gained up to 5% during the intraday trade on Wednesday to hit its upper circuit limit. The stock rallied following the company's announcement that its board would consider a bonus share issue on January 8.

Transformers and Rectifiers India share price

Transformers and Rectifiers India share price rallied 5% to hit the upper circuit limit at ₹1195.95 on the BSE on Wednesday.

Transformers and Rectifiers India share price ranged between intraday highs of ₹1195.95 and lows of ₹1161.80 during the day.

Transformers and Rectifiers India share price is very close to its 52-week high of ₹1,200 seen in December. Transformers and Rectifiers India share price has risen more than 30 times in the last two years, delivering multibagger returns to its investors.

Bonus Share Issue

Transformers and Rectifiers India post market hours on Tuesday informed the exchanges that a meeting of the board of directors of the company will be held on Wednesday, January 8, 2025.

The Board of Transformers and Rectifiers India will consider and approve the unaudited standalone and consolidated financial results of the company for the quarter and nine months ended December 31, 2024.

The Board of Transformers and Rectifiers India will also consider the proposal for the issue of bonus equity shares.

The Board further will consider and approve an increase in the authorised share capital of the company inter alia to accommodate the issue of bonus equity shares, if any.

Meanwhile in December, Transformers and Rectifiers (India) Limited had signed a Share Purchase and Shareholders' Agreement to transfer a controlling stake in a strategic investment in Posco Poggenamp Electrical Steel Private Limited.

Electrical steel, popularly known as ColdRolled Grain-Oriented (CRGO) steel, is an essential material used primarily in the cores of transformers. It is engineered to have a specific grain structure that reduces energy loss during the magnetic flux process in transformers.

The acquisition will help Transformers and Rectifiers (India) Limited to become fully integrated for processed CRGO requirements and additionally generate significant revenue by serving external customers, said the company.

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