Transformers and Rectifiers Bonus Shares: This company is going to distribute bonus shares to its investors after 12 years. The name of this company is Transformers and Rectifiers Limited. The company said in a communication sent to the stock exchanges on Wednesday, January 8 that its board has approved the distribution of bonus shares to shareholders in the ratio of 1:1. This means that the shareholders of the company will get one free share for every share they hold. After this announcement, shares of Transformers and Rectifiers jumped more than 4 percent to Rs 1,297.80 during Wednesday’s trading.
The company has not yet announced the record date for the bonus shares. This is the first time since 2013 that Transformers & Rectifiers has decided to issue bonus shares. At that time the company had given one bonus share for every 9 shares held.
Transformers and Rectifiers also announced December quarter results along with the bonus issue. Also proposed a fund raising plan. The company said that its board has approved raising about Rs 750 crore. This amount will be raised by selling shares to institutional investors through Qualified Institutional Placement (QIP).
Transformers and Rectifiers’ net profit in the December quarter increased more than 3 times to Rs 55 crore from Rs 15.6 crore in the same quarter a year ago. Out of this, Rs 7 crore was helped in increasing the company’s earnings from other sources. The company’s revenue increased by 51.5 percent to Rs 559.4 crore in the December quarter as compared to last year.
Operating profit (EBITDA) of Transformers and Rectifiers increased to Rs 84.8 crore in the December quarter from Rs 35.6 crore in the same quarter a year ago. At the same time, its EBITDA margin increased to 15.2 percent, which was 9.6 percent in the same quarter a year ago.
Transformers and Rectifiers has given returns of about 63 percent to its investors in the last one year. However, it should be noted that the stock exchanges have currently put this stock on the additional watch list. The company’s stock is currently in Stage 4 of the Addition Surveillance Major (ASM) framework.
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