Jindal SAW shares: This multibagger will turn ex-date for stock split today

Shares of Jindal SAW Ltd will turn ex-date for stock split today. The stock with face value of Rs 2 would split into shares with face value of Re 1 each. Today is also the record date for the purpose of determining the eligibility of shareholders for the purpose of split of face value of equity shares. The multibagger stock has rallied 123 per cent in past one year and a solid 804 per cent in the past five years.

A stock split enhances liquidity of the company's equity shares and encourage the participation of retail investors by making equity shares of the company more affordable to invest.

Jindal SAW operates four strategic business divisions of SAW pipes, DI pipes & Fittings, Seamless Pipes & Tubes and Mining & Pellets. It has geographically diversified manufacturing footprint spread across Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh and Karnataka. It has increased its presence in Bhilwara (Rajasthan) where apart from having low grade iron ore mine, it has also implemented an iron ore beneficiation and a pellet plant.

The order book for Iron & steel pipes and pellets stood at $1.65 billion. This included Iron & steel pipes orders worth $1,632 million and Pellets orders worth $15 million. A total of 32 per cent of Jindal SAW's orders are from global markets.

"The order book gives a visibility of approximately three to four quarters," SBI Securities said in an August note.

The brokerage said Jindal SAW's standalone debt increased from Rs 3,200 crore to Rs 3,900 crore, due to increase in working capital requirement on back of ramping up operations and lock in raw materials at stabilised prices. Jindal SAW expects to pay off the long term debt by FY26, the brokerage noted.