Smallcap under ₹100: This mulitbagger stock hits 5% upper circuit as board approves 3:1 bonus issue

Multibagger smallcap stock: Shares of Grovy India, a smallcap stock operating in the realty sector, were locked in the 5 per cent upper circuit on Friday, October 25 after the company’s board approved a bonus share issue in the ratio of 3:1.

This means that investors holding one share of Grovy India will get three shares of the company, at no additional cost.

“We hereby inform that Board of Directors of the Company in their meeting held today i.e., October 24, 2024, has inter-alia considered and approved the allotment of 1,00,02,204 /- (One crore Two Thousand Two Hundred and Four) fully paid-up Bonus Equity Shares of face value of Rs. 10/- each in the ratio of 3:1 i.e., Three (3) Bonus Equity Shares for every One (1) existing Equity Shares of the Company of Rs. 10/- (Rs. Ten) each, held by the shareholders of the Company as on the record date i.e., Wednesday, October 23, 2024,” the company informed in an exchange filing on Thursday, October 24.

Only those shareholders are eligible to receive the bonus shares who own the company’s stock as of the record date of October 23.

The bonus equity shares allotted as above shall rank pari-passu in all respects and carry the same rights as the existing equity shares of the company, including dividends and other corporate benefits, the company added.

Stock Price Trend

Following the announcement, the stock was locked in the 5 per cent upper circuit on the BSE at ₹80.90, also its 52-week high. This was the third consecutive day when the stock was locked in the 5 per cent upper circuit limit.

The stock has rallied over 67 per cent so far in October, significantly outperforming the benchmark indices that have faced severe selling pressure during the month. Nifty and Sensex are down about 7 per cent this month, posting their record monthly fall since March 2020, when the market was hit by the Covid-19 pandemic.

In the last one year as well, the stock has had a stellar run. It has delivered multibagger gains to investors of 276 per cent. Even on a year-to-date basis, the stock’s performance has been noteworthy as it has rallied over 200 per cent.

Grovy India is involved in the construction of luxury homes largely in South Delhi. The company has established itself as a developer of ‘Boutique Apartments’. The company has also expanded to Delhi-NCR as well as Rishikesh.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.