Multibagger SME stock: Captain Pipes’ share price has generated remarkable long-term returns for its investors. The company’s strategic initiatives, such as a 2:1 bonus issue and a 1:10 stock split, have significantly increased the number of shares owned by investors, firmly establishing it as a multi-bagger. These business activities have resulted in an exceptional increase in share ownership, providing significant returns to early investors. The firm manufactures and sells various varieties of UPVC pipes and fittings from its factory in Vervaval, Rajkot. Manufacturing facilities are located in Shapar, Gujarat, allowing the firm to retain a strong domestic and global market presence. In December 2014, the firm issued 1,101,000 equity shares, raising ₹4.4 Crore for development and expansion.
Change in ownership after bonus shares:
Captain Pipes’ IPO lot size was 3,000, and the stock traded ex-date for 2:1 bonus shares and a 1:10 stock split on the same day. The benefit would be based on 3000 shareholdings. The increase in shares owing to 2:1 bonus shares is 6000. According to BSE statistics, Captain Pipes Ltd. has only given one bonus since March 3, 2023. Captain Pipes Ltd.’s most recent bonus declaration was in a 2:1 ratio, expiring on March 3, 2023.
Change in ownership after stock split:
The ownership increased from 3,000 to 30,000 due to the 1:10 stock split. So, the net shareholding of 3,000 business shares increases to 36,000. BSE statistics show Captain Pipes Ltd. has had one share split since March 3, 2023. In 2023, the company split its shares from ₹10 to Re 1. The stock has been trading ex-split since March 3, 2023.
Returns for early Investors:
At 11:52 IST, Captain Pipes shares are trading at ₹17.96 on the BSE. The absolute worth of ₹1.20 lakh increases to ₹6.46 lakh (₹17.96 x 36,000). Captain Pipes reported a 7.4% year-on-year increase in standalone net profit to ₹1.09 crore for the third quarter of fiscal year 25. The firm made a profit of ₹1.02 crore last year.