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 declared a 1:5 stock split and a 1:1 bonus issue. The record date for this exciting development has been set as July 4, 2025. This news has sent shockwaves through the market, with investors eagerly anticipating the benefits that this move will bring.
Cool Caps Industries is a well-established company with a market capitalization of over ₹900 crore and a return on equity (ROE) of 26%. This impressive performance has made the company a favorite among investors, with the stock having given multibagger returns of over 150% from its 52-week low.
What Does the Stock Split Mean?
A stock split is a corporate action where the company increases the number of outstanding shares by dividing each existing share into multiple shares. In this case, the board of directors at Cool Caps Industries has recommended a 1:5 stock split, which means that every one share held by the shareholder will be converted into five shares.
The face value of the stock will also change as a result of this split. Currently, the face value of the stock is ₹10, but after the split, the face value will be reduced to ₹2. For example, if a shareholder holds 100 shares of Cool Caps Industries, they will be issued 500 shares after the split, each with a face value of ₹2.
What Does the Bonus Issue Mean?
A bonus issue, also known as a scrip issue, is a corporate action where the company issues additional shares to its existing shareholders without requiring any payment. In this case, the board of directors at Cool Caps Industries has recommended a 1:1 bonus issue, which means that every one share held by the shareholder will be issued one additional share.
The face value of the shares issued in the bonus issue will also be ₹2, the same as the face value of the shares issued after the stock split. This means that the total number of shares held by each shareholder will increase by 100%.
Why is the Company Issuing Shares?
There are several reasons why a company may issue shares to its shareholders. One reason is to increase the liquidity of the shares, making it easier for investors to buy and sell them. Another reason is to increase the ownership of the company among existing shareholders, which can lead to higher returns on investment.
In the case of Cool Caps Industries, the company may be looking to increase its liquidity and ownership among existing shareholders. The company has been performing well over the years, and the stock has given impressive returns to investors. By issuing additional shares, the company may be looking to give its shareholders a greater stake in the company’s success.
What Does this Mean for Investors?
For investors who hold shares of Cool Caps Industries, this announcement is a welcome development. The stock split and bonus issue will increase the number of shares held by each investor, which can lead to higher returns on investment.
Investors who are looking to buy shares of Cool Caps Industries may also benefit from this announcement. The stock split and bonus issue will increase the liquidity of the shares, making it easier for investors to buy and sell them. This can lead to higher trading volumes and more competitive prices, which can benefit investors.
Conclusion
In conclusion, the announcement by Cool Caps Industries of a 1:5 stock split and a 1:1 bonus issue is a significant development for the company and its shareholders. The record date for this development has been set as July 4, 2025, and investors are eagerly anticipating the benefits that this move will bring.
For investors who hold shares of Cool Caps Industries, this announcement is a welcome development. The stock split and bonus issue will increase the number of shares held by each investor, which can lead to higher returns on investment. For investors who are looking to buy shares of Cool Caps Industries, this announcement can lead to higher trading volumes and more competitive prices, which can benefit investors.
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