Transformers and Rectifiers Shares Hit Lower Circuit After Announcing Bonus Issue and Q3 Results

On January 8, 2024, Transformers and Rectifiers Ltd disclosed that its board of directors has approved the issuance of one bonus share for every one share held (1:1) by its shareholders. This marks the company’s first bonus issue since 2013 when it announced 1 bonus share for every 9 shares held by shareholders. The record date for the bonus share issue has not yet been determined.

Fundraising Via QIP

In addition to the bonus issue, Transformers and Rectifiers has approved a fundraising plan. The company aims to raise ₹750 crore by selling shares to eligible institutions via the Qualified Institutional Placement (QIP) route.

Transformers and Rectifiers Q3 FY25 Results

For the December quarter, the company reported a net profit of ₹55 crore, a significant increase compared to ₹15.6 crore in the same quarter last year. This growth was partly driven by a ₹7 crore rise in other income. The company’s revenue for the quarter surged by 51.5% year-on-year, reaching ₹559.4 crore.

The company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) stood at ₹84.8 crore, up from ₹35.6 crore in the previous year. EBITDA margin also expanded to 15.2%, up from 9.6% during the same period last year.

On January 9, 2025, Transformers and Rectifiers shares opened at ₹1,220.00 and hit the lower circuit at ₹1,185.15 at 09:20 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.