SME IPO hit 5% upper circuit as Board approves 2:3 bonus shares, stock split

Veerkrupa Jewellers Ltd is a SME IPO having a market cap of ₹106.78 Cr and the company deals in the consumer discretionary sector. The company, who manufactures and trades a variety of gold and silver jewellery items has announced two distinct corporate actions: bonus shares and stock split. The Board considered and authorised the issuing of bonus shares in a 2:3 ratio as well as the split of 1 equity share with a value of Rs. 10/- each into 10 equity shares with a value of Rs. 1 per share.

Veerkrupa Jewellers said in a stock exchange filing that “The Board has considered and approved issue of Bonus Shares in the ratio of 2 bonus shares for every 3 existing shares to the shareholders and has also approved Split of nominal value of 1 (one) equity share of Rs. 10/- (Rupees Ten) each into 10 (Ten) equity shares of Rs. 1/- (Rupees One) each subject to necessary permissions and approvals.”

Veerkrupa Jewellers is a S&P BSE SME IPO which got listed on the BSE on 18-07-2022 and an issue price of ₹27 per equity share and since then it has rallied to the current level of ₹135.80 logging in at an all-time-high-of 429.43% so far. On February 8th, the day before the outcomes of its Board Meeting regarding the split and bonus, it reached its 52-week high of Rs. 136 per equity share. The stock has grown by 59.76% YTD in 2023, and during the past six months, it has produced a multibagger return of 125.39%. The stock has appreciated by 23.57% over the past month, and by 10.00% during the past five trading sessions.

Veerkrupa Jewelers' annual revenue climbed by 164.7% in the previous year to reach ₹12.3 crore. During the previous fiscal year, the average revenue growth in its sector was 17.8%. Additionally, it has a respectable debt-to-equity ratio of 0.1, which is below 1. This suggests that the firm's assets are mostly funded by equity and that the company is able to use the equity-financed assets in the expansion of the overall growth of its business strategies.

The debt-free company has also considered growing and branching out in significant metropolises to broaden its customer base. Massive gold reserves are also held by the corporation and are only utilised to create jewellery for its customers. The highest recovery from its 52-week low was recently achieved on Wednesday by the Veerkrupa Jewellers stock, which successfully passed over its third resistance level. The shares of Veerkrupa Jewellers Ltd closed today on the BSE at 5% upper circuit limit of ₹135.80. The stock recorded a total volume of 1,20,000 shares. Veerkrupa Jewellers SME IPO of Rs. 65.58 Cr through a fresh issue was opened for subscription from 29 June to 8 July 2022.