Shakti Pumps shares locked in upper circuit as board to consider bonus issue

Shakti Pumps (India) Ltd share price was locked in an upper circuit in September 30 trade, after the company announced to consider proposal for bonus shares to public in its upcoming board meeting. The share price hit Rs 4,270.65 a piece on the NSE, rising to its highest permissible tradeable limit of five percent for the day.

The sharp uptrend was witnessed as the company's Board will meet on Monday, October 7, to consider the proposal for the issue of bonus shares in the ratio of 5:1. This means five new shares will be distributed to the shareholders each for every 1 (One) existing fully paidup equity share of Rs 10 each.

Additionally, the company also said it will "consider the proposal for an increase in the authorized share capital of the Company and alter/amend in the Memorandum of association (“MOA”) of the Company to such amount as may be determined by the Board of Directors."

Shakti Pumps share price has delivered 221.87 percent returns in the last 180 days, as per BSE data. In the last three years, the stock is up 512.94 percent, outperforming benchmark Sensex that rose only by 42.59 percent during the same period.