Multibagger stock turns green, hits upper circuit as board to consider bonus issue of shares

Shares of Shakti Pumps (India) Ltd hit the upper circuit of 5% in the afternoon session on Monday after the firm said its board would consider a proposal for issue of bonus shares in the ratio of 5:1 on October 7. The multibagger stock, which was trading in the red till 1:45 pm amid the crash in Sensex and Nifty, turned green on the announcement. The stock hit upper circuit of 5% at Rs 4295.45 against the previous close of Rs 4090.95 on BSE. Total 0.18 lakh shares of Shakti Pumps changed hands amounting to a turnover of Rs 7.43 crore. Market cap of the firm rose to Rs 8,605.98 crore.

Shakti Pumps stock hit a 52 week low of Rs 843.85 on October 4, 2023 and a 52 week high of Rs 5089.30 on August 6, 2024. Shakti Pumps shares have a beta of 0.4, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 39.9, signaling it's trading neither in the overbought nor in the oversold zone. Shakti Pumps shares are trading higher than 5 day, 10 day, 20 day, 100 day, 150 day, 200 day but lower than the 30 day and 50 day moving averages.

In the last one year, the Shakti Pumps stock has surged 400% and risen 734.23% in two years. This year, the stock has rallied 316.77%. 

"The Meeting of the Board of Directors of the company scheduled to be held on Monday, October 7, 2024 through video conferencing, inter alia:-

1. To consider the proposal for an increase in the authorized share capital of the Company and
alter/amend in the Memorandum of association (“MOA”) of the Company to such amount as
may be determined by the Board of Directors, subject to the approval of Shareholders of the
company. 

2. To consider the proposal for issue of bonus shares in the ratio of 5:1 i.e., 5 (Five) new fully
paid up equity share of ? 10/- (Rupees Ten only) each for every 1 (One) existing fully paidup equity share of ? 10/- (Rupees Ten only) to the equity shareholders of the company subject to the approval of Shareholders of the Company.

3. To consider the proposal of appointment of Mr. Ramakrishna Sataluri (DIN: 08903553) as an Additional cum Non-Executive Non Independent Director of the Company subject to the approval of Shareholders of the Company," said Shakti Pumps.  

Shakti Pumps India Limited is a business of manufacturing multiple kinds of pumps including the ones which are submersible, solar, pressure booster, agricultural and a few others, which are used for domestic, industrial and agricultural purposes. The company exports their pumps to almost 100 countries.