1:5 Stock Split: Ex-Date This Week On 22nd March; Buy/Sell Or Hold?

Refex Industries Limited is a small-cap company in the commodity sector. As of Friday’s closing session, its market valuation was Rs 1,418.38 Cr.

In India, Refex Industries Limited (RIL) specializes in producing and re-filling refrigerant gases. Refex Industries Ltd. additionally entered the market, providing power plants with services such as fly ash handling and disposal, 24-hour coal yard management, uncrushed coal crushing, and coal trading to power plants. The record date for the stock split announcement that is being discussed here is set by the firm as 22/03/2024.

Refex Industries Stock Split

“Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Company has fixed Friday, March 22, 2024 as the Record Date for determining entitlement of Equity Shareholders for the purpose of sub division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid up, will be sub divided into 5 (five) equity shares having face value of Rs. 2/- (Rupees Two only) each, fully paid up, ranking pari-passu in all respects which was approved by the Equity Shareholders through Postal Ballot on March 1, 2024. The voting results of the Postal ballot has been intimated to the Stock Exchanges on March 2, 2024,” said Refex Industries in a regulatory filing on March 07, 2024.

Refex Industries News

The Board of Directors of the company at its meeting held on Saturday, March 2, 2024, inter-alia, considered and approved “Fund Raising through Preferential issue to Promoter / Promoter Group – Preferential Issue of 50,00,000 (Fifty lakhs) equity shares and 1,25,75,000 (One Crore Twenty-Five lakhs and Seventy-Five Thousand) warrants at face value of Rs. 2/- each (i.e., post -split/sub-division) to the Promoter/ Promoter Group entity(s), subject to approval from the shareholders in the upcoming General Meeting and sanctions/approvals from the other regulatory/ governmental authorities, as may be required,” the company said in a BSE filing on March 02, 2024.

“As per the Valuation Report, the Fair Value of one equity share, having face value of Rs 10/- each of the Issuer is Rs 620.03/- (Rupees Six Hundred and Twenty and Three paise Only) and the Fair Value of one equity share having face value of Rs 2/- (i.e., post split/sub-division which is proportionally adjusted) of the Issuer is Rs 124/- (Rupees One Hundred and Twenty-Four Only). Therefore, the Issue Price has been fixed at Rs 125/- (Rupees One Hundred and TwentyFive only), which is not less than the floor price arrived at, in accordance with Regulation 164 and 166A of Chapter V of the SEBI ICDR Regulations,” the company further added.

“Floor Price has been arrived at Rs 124/- and the Issue Price has been fixed at Rs 125/-, i.e., the adjusted values, taking into consideration the sub-division of nominal value of the equity shares of the Company, from one equity share of Rs 10/- to one equity share of Rs 2/- (thereby splitting one equity share of Rs 10/- into 5 equity shares of Rs 2/- each) (before stock-split Floor Price arrived at Rs 620.03/- and accordingly, Issue Price becomes Rs 625/-),” said Refex Industries in a BSE filing.

Refex Industries Financials

In the December 2023 quarter, the firm had net sales of Rs 301.51 crore, a 20.74% fall from the December 2022 quarter’s Rs 380.40 crore. In Q3FY24, the company’s net profit was Rs. 19.78 crore, a 24.38% drop from Rs. 26.15 crore in Q3FY23. EBITDA declined by 9.98% from Rs. 40.97 crore in the same quarter of the previous fiscal year to Rs. 36.88 crore in the quarter reported.

Refex Industries Share Price Target

Refex Industries is bearish on the daily charts with strong resistance at 685. A daily close below support of 600 could lead to a target of 550 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies

. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.

Vipul Das Goodreturns
source: goodreturns.in