Shares of Shakti Pumps (India) Ltd. dropped 5% after reaching a day’s high of Rs 4,599.95 on 7th October, despite the board of directors recommending a bonus issue for shareholders in the ratio of 1:5.

The company reported in an exchange filing that the decision to issue bonus shares was made during today’s board meeting.

In its official statement, the company announced, “The board has recommended issuing bonus shares in the ratio of 5:1, meaning five new fully paid-up equity shares of Rs 10 each for every one existing fully paid-up equity share of Rs 10 each for eligible shareholders as of the record date.”

The record date, which will determine shareholders’ eligibility for the bonus shares, has yet to be set. The company said it would notify the exchanges about the record date “in due course.”

The company paid its shareholders a final dividend of Rs 4 per share on 23rd September 2024.

So far in 2024, the stock has sky-rocketed and given multi-bagger returns of nearly 320%. The company’s market capitalisation stood at around Rs 8,654 crore.

At 3:30 PM, the shares of Shakti Pumps closed 5% lower at Rs 4,319.80 on NSE.

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