A multibagger stock from Rekha Rakesh Jhunjhunwala's multimillion portfolio was trading showing a 50 per cent fall on the trading apps today. However, this 'fall' is not a real drop in the counter as the stock was trading adjusted with the issue of bonus shares in 1:1 ratio by the company on Friday.
The stock is Raghav Productivity Enhancer Ltd (RPEL), which has zoomed about 3,500 per cent in the last three years. The stock moved to Rs 1,600 (before adjustment) on Thursday, November 28. The stock was trading at sub Rs 45 levels in November 2021. Eligible investors will get one bonus share for each share they held in the company as of the record date.
Shares of Raghav Productivity Enhancer were settled at Rs 1562.35 on Thursday, falling 6 per cent for the day. The total market capitalisation of the company stood close to Rs 3,600 crore for the day. However, the stock was opened for trading at Rs 793.95 on Friday, signaling about 50 per cent fall on an adjusted basis.
However, one should note that the company announced Saturday, November 30 as the record date for allotment of bonus shares but the corporate action was reflected on the trading applications on Friday, the last working day before the record date. The bonus shares shall be listed next week.
Bonus shares will be credited in the depository system on December 2, 2024 (Monday) by 12:00 pm and also ensure that the same will be available for trading on December 3, 2024 (Tuesday), said the exchange filing by the company. The shareholders of the company approved issuance of bonus shares on November 21.
Rekha Jhunjhunwala owned 11,02,852 equity shares, or 4.80 per cent, in Raghav Productivity Enhancers as of September 30, 2024. Her stake in the company valued at Rs 172.30 crore as of the previous trading session. Jhunjhunwala is likely to get the same number of shares in the bonus issue.
Raghav Productivity Enhancers (RPEL) is engaged in manufacturing of quartz based ramming mass, quartz powder, and tundish board. It sells its products under the brand name of 'Raghav' to its customers. The company manufactures, supplies and exports silica (acidic) ramming mass, which is used as furnace refractory lining material for the steel industry.