Smallcap company in textile sector Lorenzini Apparels has decided to postpone for the time being the proposal related to issuing bonus shares and increasing the authorized share capital. This decision was taken in the meeting of the Board of Directors of the company held on 25 December 2024. After this, on Thursday, shares of Lorenzini Apparels closed at Rs 20.15, registering a decline. If the board had approved the proposal, it would have been the company’s second bonus issue this year.
Bonus shares have already been distributed
Lorenzini Apparels, which has already given multibagger returns to investors, has issued bonus shares in the ratio of 6:11 in March 2024 this year. This means that for every 11 shares, 6 bonus shares were given. Apart from this, the company had also split its shares during the same period. The shares with face value of Rs 10 were divided into 10 shares of face value of Rs 1 each.
Tremendous growth of 5208% in 5 years
Lorenzini Apparels has attracted its investors by giving multibagger returns. The company’s shares have seen an unprecedented rise of 5208% in the last 5 years. Shares of Lorenzini Apparels, which were trading at 38 paise on December 26, 2019, have now reached the level of Rs 20.15.
- Last 4 years: 3778% jump. Shares rose from 52 paise to above Rs 20.
- Over the last 3 years: 1958% growth.
- Over the last 1 year: Up by more than 26%.
Stock performance and highs
The 52-week high level of Lorenzini Apparels shares is Rs 35.90, while the lowest level is Rs 14.82. These figures show that the company’s shares have given excellent returns to investors in the recent past.
Bonus shares and investors’ expectations
After the bonus issue and share split in March 2024, investors were expecting another bonus issue from the company. However, this decision of the board may have some impact on the sentiments of investors.
