Cool Caps Announces Record Date for Stock Split & Bonus Share
In a recent development, Cool Caps Industries, a leading manufacturer of plastic caps for beverages, has made a significant announcement that has sent shockwaves through the financial markets. The company’s board of directors has recommended a 1:5 stock split, where the face value of the shares will be reduced from ₹10 to ₹2, and a 1:1 bonus issue, where existing shareholders will receive one additional share for every share they hold. The record date for this exciting development has been set as July 4, 2025.
This news comes as a bonus for the company’s shareholders, who have already seen significant returns on their investment. Cool Caps’ stock has given over 150% multibagger returns from its 52-week low, making it an attractive option for investors seeking high returns.
So, what does this mean for Cool Caps and its shareholders? Let’s break it down.
Why a Stock Split?
A stock split is a corporate action where a company divides its existing shares into a larger number of shares, thereby reducing the face value of each share. In this case, Cool Caps is splitting its shares 1:5, which means that every one share held by an investor will become five shares, each with a face value of ₹2. This move is intended to increase the liquidity of the shares, making it easier for investors to buy and sell them. It also reduces the price of the shares, making it more accessible to a wider range of investors.
Why a Bonus Issue?
A bonus issue, on the other hand, is a corporate action where a company issues additional shares to its existing shareholders. In this case, Cool Caps is issuing one bonus share for every share held by an investor. This move is intended to increase the company’s capital base, allowing it to fund its future growth plans.
What’s Next?
The record date for the stock split and bonus issue has been set as July 4, 2025. This means that investors who own shares of Cool Caps as of this date will be eligible to receive the new shares. The company will issue the bonus shares and split the existing shares in the ratio of 1:1 and 1:5, respectively.
Investor Reaction
The news has sent the stock price of Cool Caps soaring, with investors rejoicing at the prospect of increased liquidity and potential for higher returns. The company’s market capitalization has already crossed the ₹900 crore mark, and its return on equity (ROE) stands at a healthy 26%.
Conclusion
Cool Caps’ announcement of a stock split and bonus issue is a significant development that is likely to have a positive impact on the company’s shareholders. The move is expected to increase liquidity and make the shares more accessible to a wider range of investors. With the stock having given over 150% multibagger returns from its 52-week low, Cool Caps is certainly a stock worth keeping an eye on.
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