After Maharashtra Seamless’ board of directors recommended issuing bonus equity shares of the firm in a 1:1 ratio, the price of the company’s stock dropped more than a per cent on the NSE. At 10:40 on Monday morning, the stock’s price was Rs 853.35, down more than 20 points, or 2.30 per cent. In the day’s first dealings on Tuesday, the company’s shares were trading more than 2% lower at Rs 853 per share on the BSE.
Maharashtra Seamless, a small-cap firm, announced a bonus share issue on Monday in the ratio of 1:1, i.e., one equity share for every share owned by the investor as of the record date. The record date for the same would be disclosed in due course, the company stated in a statement with the markets. Bonus shares are issued by publicly traded corporations from their free reserves and surplus. Bonus equity shares are issued and allocated to eligible investors using this capital.
Maharashtra Seamless reported a 94.3% increase in consolidated net profit to Rs 176.58 crore in Q2 FY23 over Q2 FY22, on a 48.6% increase in net sales to Rs 1414.21 crore.
Profit before tax increased by 77.8% year on year to Rs 217.46 crore in the fiscal quarter ending 30 September 2022. During the quarter that ended 30 September 2022, total expenses increased 41.75% year on year to Rs 1211.17 crore.
During the review period, the cost of materials consumed was Rs 953.38 crore (up 25.9% YoY), employee benefits expenses were Rs 26.65 crore (up 24.65% YoY), and other expenses were Rs 209.52 crore (up 36% YoY).
By issuing additional shares to existing shareholders, a stock split increases the number of shares that are currently outstanding. The opposite of bonus shares is fully paid additional shares that a company issues to its current shareholders.
The company stated that bonus shares would be credited or distributed by 16 December 2022, or two months after the board approval date.
Maharashtra Seamless previously disclosed that it had paid a long-term debt of about Rs. 315 crores early on its own initiative. on October 10, 2022, from the Company’s internal accruals to HDFC Bank Limited.
Maharashtra Seamless Limited (MSL) is the flagship company of the well-diversified DP Jindal Group, which was founded on May 10, 1988. It has a market capitalization of Rs 5737 crore. The Company manufactures seamless pipes of various capacities for use in oil exploration, boilers, pipelines, petrochemicals, and other industries.
The facility is located in Raigad, Maharashtra, and is outfitted with cutting-edge technology. Mannesmann Demag Huttentechnik, Germany, has a technical relationship with the company. MSL uses world-renowned CPE technology to produce sizes ranging from 3/4′ OD to 7′ OD in hot finished and 10 mm OD to 108′ OD in the cold drew and cold pilfered conditions.
Aside from seamless pipes and tubes, the company also manufactures big-diameter Electric Resistance Welded (ERW) pipes with diameters ranging from 8′ to 20′ and wall thicknesses ranging from 3.2 mm to 12.70 mm. As of March 31, 2019, the Company had six subsidiaries, two of which were completely owned subsidiaries established in India and the remaining four were registered outside of India. Carbon and alloy steel seamless pipes, ERW (Electrical Resistance Welding) steel and castings pipes, and a wind power mill are also produced by the company.
Meanwhile, the Maharashtra Seamless Board of Directors has accepted the nomination of Sarat Kumar Mohanty as Chief Financial Officer. Appointment of Sarat Kumar Mohanty as the Chief Financial Officer of the Company, effective October 17, 2022, the exchange filing states.
Additionally, subject to shareholder approval, it has approved the reclassification, increases in authorized capital, and necessary amendments to the company’s memorandum of association.
