Multibagger stock Vesuvius India rises 6% as board approves first-ever stock split in 1:10 ratio

Multibagger small-cap stock: Shares of Vesuvius India surged 6% in today's intraday, February 27 after the company’s board approved a stock split proposal in a 1:10 ratio. This means that one share of the company, with a face value of ₹10 apiece, will be split into ten shares with a face value of ₹1 each. 

"The board has approved the proposal for the split/sub-division of existing equity shares of the company from 1 (one) equity share with a face value of ₹10 (Rupees Ten) each, fully paid-up, into 10 (ten) equity shares with a face value of ₹1 (Rupee One) each, fully paid-up, subject to shareholder approval at the upcoming Annual General Meeting (AGM)," the company stated in its Wednesday's exchange filing.

The company further clarified that the stock split is subject to shareholder approval. If approved, this will be the first stock split in the company's history.

A stock split is a corporate action initiated to enhance the liquidity of a stock in the secondary market. The process involves dividing existing shares into multiple shares, thereby reducing the nominal value of each share while maintaining the overall market capitalization.

However, Vesuvius India has not yet disclosed the record date for the stock split. Investors holding the stock until the record date will receive the newly split shares in their demat accounts, with the stock price adjusted proportionally based on the predetermined split ratio.

Along with its Q3FY25 results announcement, the company also declared a dividend and the stock split. It announced a dividend of ₹14.50 (Rupees Fourteen and Fifty Paise) per equity share of ₹10 each for the financial year ended December 31, 2024, subject to shareholder approval at the upcoming AGM.

The record date for the dividend has been set as May 1, 2025, to determine eligible shareholders. If approved at the AGM on May 8, 2025, the dividend will be paid thereafter.

For the December ending quarter, the company reported a net profit of ₹60 crore, a marginal improvement as compared to the net profit of ₹57 crore reported in the same period last fiscal. The revenue from operations during the reporting quarter came in at ₹509 crore as against a revenue of ₹417 crore in Q3FY24.

Stock up 300% since June 2022

The company’s shares have delivered massive returns to shareholders, surging 300% since June 2022, rising from ₹1,028 to the current trading price of ₹4,164. The stock touched an all-time high of ₹5,999 in September 2024 but failed to sustain its rally as heavy selling in the broader market led to a prolonged decline in the following months.

At current levels, the stock is trading at a 30% discount from its peak.

The company is primarily engaged in the manufacturing and trading of refractory goods. It also provides related services and operates both in India and international markets.

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