After a 1,400% rally, this multibagger will turn 1 share into 100! Here's how

New Delhi: Microcap textile player Alstone Textiles (India), which has been consistently hitting the upper circuit, announced one of the biggest bonuses in the Indian stock market, along with a sub-division of equity shares.

The board announced a stock split in the 9:1 ratio and a stock split in the 1:10 ratio. The company board approved both corporate actions, the company said in an exchange filing.

This means that every eligible shareholder will get 10 equity shares with a face value of Re 1 each, for every one share they held with a face value of Rs 10 each, as of the given record date.


Pursuant to this, the company has also announced the issuance of nine bonus shares with a face value of Re 1 each for every share held by the investors with a face value of Re 1 on the given data.

This means that an eligible shareholder will get 100 equity shares with a face value of Re 1 each for every share held by them with a face value of Rs 10 each after the corporate action. The company has fixed December 3, 2022, as the record date.

Following the announcement, shares of Alstone Textiles (India) were up 5%, locked in the buyer's circuit at Rs 235.5. The scrip settled at Rs 224.30 on Thursday. Alstone Textile has delivered multibagger returns to the investor as the stock is up by 175% in the last month, whereas the counter has zoomed 1,400% since August 24.

Erstwhile known as Shalini Holdings, Alstone Textile, a 37-year-old company, is a debt-free company engaged in the business of fabric trading and investments. The small-cap company clocked a net profit of Rs 8 crore in the September 2022 quarter, less than Rs 1 crore in the June 2022 quarter.