Shares of Mirza International on Friday hit its upper circuit limit of 10 per cent, taking its 6-day winning run to 88 per cent. The stock has hit its upper circuit for three straight sessions now. Mirza International shares have been in the uptrend ever since the footwear stock went ex-demerger in March.
On Friday, the stock rose 10 per cent to Rs 60.40, pushing its market capitalisation to Rs 834.74 crore level on BSE. The scrip had jumped 10 per cent on Thursday. It soared 20 per cent on Wednesday, 17.61 per cent on Tuesday and 7 per cent each on Monday and Thursday.
The promoter group-owned entity RTS Fashions was merged with Mirza International recently and that the amalgamated Mirza International, which manufacturers and markets leather footwear and finished leathers, de-merged its branded business into Red Tape, whose ex-date was March 29.
The Mirza International stock is now trading ex-Red Tape and the demerged Red Tape will soon be listed on stock exchanges. As per a BSE filing on April 15, the net worth of Mirza International immediately before demerger was Rs 726.91 crore. The net assets of demerged undertaking Red Tape stood at Rs 301.46 crore.
The Red Tape board recently okayed the allotment of 13,82,01,900 shares of face value of Rs 2 each of Red Tape, credited as fully paid up to the equity shareholders of the Transferee Company - Mirza International, in the 1:1 share exchange ratio.
Apart from supplying products to global retailers, Mirza had in-house brands Red Tape and Oaktrak - in its portfolio. As per a report, Red Tape accounted for nearly 70 per cent of the combined company revenues and about 80 per cent of profit in the first nine months.