Remus Pharma zooms 20% to life high after declaring bonus issue of shares

SME multibagger

Shares of SME multibagger Remus Pharmaceuticals jumped 20 percent to hit the upper circuit on April 24 after the company announced a bonus issue of shares.

The company informed the bourses that its Board of Directors has approved and recommended the issuance of bonus shares to the equity shareholders of the company in the ratio of 3:1, or three new fully paid-up equity shares of Rs 10 each for every one existing fully paid-up equity share of Rs 10 each.

The company also announced the second interim dividend of Rs 4 per share for FY24. The record date for the purpose of eligibility of payment of the interim dividend shall be May 2, as per the announcement.

Also read: Saurabh Rungta’s pre-election strategy: Book profits in mid and smallcaps, allocate funds to largecaps

The shares of Remus Pharma are trading at life highs after seeing a price\-volume breakout. Trading with a five-month price breakout, the Remus Pharma shares have gained 385 percent since their listing on the NSE Emerge platform in May 2023. On a year-to-date basis, the Remus Pharma shares are up 7 percent.

For the period ended September 2023, Remus Pharma declared Rs 8 crore net profit with a turnover of Rs 29 crore. The shares are trading at a PE of 97.

The shareholding pattern for March 2024 shows that the promoter and FIIs have raised their stakes in the company marginally compared to the September 2023 quarter. Promoters hold 70.60 percent, while FIIs hold 3.25 percent in the company. For the September period, the FIIs held 2.38 percent in the company.

SME-listed stocks are seen outperforming the key benchmark indices in CY24 even after Sebi cautioned about possibilities of some froth in smallcaps and SME market segment.

The BSE SME IPO index is up by 41 percent on a year-to-date basis, while the BSE Sensex gained 2.5 percent. In the last one year, the BSE SME IPO index has shot up 161 percent, trading near its all-time highs.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.