Himachal Fibres, a company that manufactures all types of yarns, has soared 1900 percent in the last one year and its market cap has increased from Rs 50 lakh in 2011 to Rs 350 crore now. Himachal Fibres' stock price increased from Rs 2 per share to Rs 40/ share in the last one year.
The company's outstanding shares increased from 30 lakh to 8.65 crore. This happened post a series of preferential allotment and a stock split. The company went in for preferential allotments four times since 2009.
1) 15.02 lakh shares at Rs 10 per share on September 10, 2009
2) 5 lakh shares at Rs 10/ share on March 15, 2011
3) 11.2 lakh shares at Rs 35/ share on May 25, 2011
4) 40 lakh shares or 46.37 percent at Rs 17.50 per share.
This company's open offer was not successful post this preferential allotment and its outstanding shares increased to 86.2 lakh from 30 lakh.
The company also went in for a stock split — from Rs 10 to Re 1 — on February 9, 2015, which resulted in its outstanding shares increasing to 8.6 crore from 86.5 lakh.
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