5500% rally in one year! Multibagger stock to consider bonus shares, stock split, dividend

Shares of Bharat Global Developers Ltd (BGDL) surged 5 per cent to ₹1,045.70 after the company said its board will meet on November 18 to discuss a stock split, bonus share issuance, and dividend proposal.

The stock was locked in the 5 per cent upper circuit for the tenth straight session and has gained around 63 per cent since October 30.

The company stated that it will consider issuing bonus shares in the ratio of 10:8, meaning shareholders could receive eight additional shares for every ten held, reflecting BGDL’s strong financial reserves. Additionally, the board plans to evaluate a stock split of up to 1:10 to make shares more affordable and boost market liquidity.

“The Board will deliberate on issuing bonus shares of up to 10:8. If approved, shareholders would receive up to 8 additional shares for every 10 (Ten) shares held. This proposal reflects BGDL's robust reserves and is intended to reward loyal shareholders by increasing their holdings at no extra cost, underscoring our confidence in the company’s growth outlook,” the company said in an exchange filing.

The Board will also consider a proposal for a stock split of up to 1:10, subject to necessary approvals, the company added. 

"The objective of the stock split is to reduce the share price per unit, thereby making BGDL shares more accessible and affordable to a broader range of investors. By increasing the number of outstanding shares, this move is expected to improve trading liquidity and marketability of BGDL's shares," the firm further stated.

A potential dividend declaration of up to 100 per cent is also on the agenda, showcasing BGDL’s commitment to profit distribution and strong financial standing.

“The Board will review the possibility of declaring a dividend of up to 100%. This proposal, if approved, would offer a significant return on investment to shareholders, demonstrating BGDL's commitment to returning profits and highlighting the company’s strong financial position and consistent cash flow,” the filing added.

The company further emphasised that these proposed actions reinforce BGDL's commitment to delivering long-term shareholder value and fostering strong investor engagement. By combining a potential stock split, bonus shares, and a dividend, BGCDL aims to reward investors, increase market liquidity, and solidify its standing as a preferred investment choice.

Stock Performance Overview

BGDL shares have delivered multibagger returns of over 5,500 per cent in the past year, with a 1,817 per cent rally in 2024 alone. In November, the stock has rallied 48 per cent so far following a 3 per cent dip in October. The stock previously surged 178 per cent in September and 38 per cent in August.

Currently, BGDL's share price is just over 2 per cent shy of its peak at ₹1,069.60, achieved in October 2024, and has soared from its 52-week low of ₹18.66 recorded in November last year.

Other Recent Developments

Bharat Global Developers recently announced significant progress for its AgriTech Division, which secured its first major order from McCain India Agro Pvt Ltd. This order, valued at approximately ₹300 crore, involves supplying 200,000 tonnes of Kufri Ashoka potatoes over six months, commencing this fiscal year. The company highlighted this as a pivotal achievement for Bharat Global AgroTech Pvt Ltd, reinforcing its footprint in India's agricultural sector.

BGDL also informed the stock exchanges that its board will convene on November 13, 2024, to review and approve the financial results for the quarter ending September 2024 (Q2FY25).

The company emphasised its strong position as a key player in India's agricultural supply chain and expressed optimism about future growth prospects. BGDL reiterated its commitment to expanding within the AgriTech sector. Bharat Global Developers Ltd was formerly known as Kkrrafton Developers Ltd.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.