Cool Caps Announces Record Date for Stock Split & Bonus Share
Cool Caps Industries, a leading manufacturer of plastic caps for beverages, has made a significant announcement that is likely to delight its shareholders. The company’s Board of Directors has recommended a 1:5 stock split and a 1:1 bonus share issue, with July 4, 2025, as the record date. This news comes as a welcome surprise, especially considering the company’s impressive performance over the past year.
Cool Caps Industries has been a star performer in the market, boasting a market capitalization of over ₹900 crore and a return on equity (ROE) of 26%. The company’s stock has given multibagger returns of over 150% from its 52-week low, making it a hot favorite among investors. This stock split and bonus share issue are expected to further boost the company’s shares, making it an attractive investment opportunity for those looking to diversify their portfolios.
So, what does this mean for Cool Caps Industries and its shareholders? Let’s break it down:
Stock Split:
The company will split its face value from ₹10 to ₹2, making the stock more affordable for retail investors. This move is expected to increase the liquidity of the stock, making it easier for investors to buy and sell shares. A lower face value also means that the stock will be more price-sensitive, potentially leading to a higher trading volume.
Bonus Share Issue:
The bonus share issue will see shareholders receiving an additional share for every share they hold, with the face value of ₹2. This means that investors who hold 100 shares of Cool Caps Industries will receive an additional 100 shares, effectively increasing their holding by 100%. This move is expected to increase the company’s capital base, allowing it to fund new projects and initiatives.
Record Date:
The record date for the stock split and bonus share issue is July 4, 2025. This means that investors who own shares of Cool Caps Industries as of this date will be eligible to receive the bonus shares and participate in the stock split.
Why This Move Makes Sense:
Cool Caps Industries’ decision to announce a stock split and bonus share issue makes sense for several reasons. Firstly, the company’s stock has been trading at a premium valuation, and a stock split can help to make it more affordable for retail investors. Secondly, the bonus share issue will increase the company’s capital base, allowing it to fund new projects and initiatives. Finally, the move is expected to boost investor confidence, potentially leading to increased trading volumes and a higher price for the stock.
Conclusion:
Cool Caps Industries’ announcement of a 1:5 stock split and a 1:1 bonus share issue is a significant development that is likely to delight its shareholders. The move is expected to increase the liquidity of the stock, make it more affordable for retail investors, and boost investor confidence. With a market capitalization of over ₹900 crore and an ROE of 26%, Cool Caps Industries is a company to watch in the coming months. Investors who are looking to diversify their portfolios may want to consider adding this stock to their watchlist.
Source:
