Shares of RMC Switchgears climb as record date for the bonus issue approaches

Indian benchmark indices maintained their upward momentum, with the fast-moving consumer goods, telecommunications, real estate, and auto sectors leading the way as the top gainers. With 2,358 shares rising on the BSE and 1,290 shares declining, the advance-decline ratio strongly remained in favour of advances.

RMC Switchgears Ltd engaged small-cap investors with its robust uptrend. On Wednesday, during intraday trading, shares of RMC Switchgears Ltd surged over 5%, reaching a high of Rs 799 per share on the BSE. Shares have experienced a notable uptick in buying interest, marking a substantial 12% gain over the last five trading sessions, primarily driven by the approaching record date for the bonus issue.

The company has officially set the record date as October 13, 2023, for determining the eligibility of shareholders who are entitled to receive bonus equity shares from the company. Shareholders will be granted one new equity share valued at Rs 10 each for every 2 existing equity shares, also valued at Rs 10 each, in a ratio of 1:2. The shares have already delighted investors with impressive returns, yielding approximately 200% returns year-to-date and a remarkable 425% returns over the past year.

In terms of its annual performance, the company reported robust growth in net sales for FY23, with a remarkable increase of 200%, reaching Rs 125.27 crore, compared to the previous year’s figure of Rs 41.56 crore. Additionally, net profit for the financial year ending in March 2023 soared by leaps and bounds to Rs 11.74 crore, as opposed to the previous year’s figure of Rs 0.58 crore.

RMC Switchgears Ltd focuses primarily on switchgear engineering, ECI contracts for the power distribution/transmission sector, and the production of PVC marble and solid surface materials. Some of the company’s prominent clients include Polycab, Torrent Power, Tata Power-DDL, ABB, and Bajaj Electricals.

Keep a close eye on this stock for the upcoming trading sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.