In a blockbuster move for investors, this micro-cap packaging company Cool Caps Industries Limited announced a dual corporate action a month ago, a 1:5 stock split followed by 1:1 bonus share issue. With the critical ex-date set for tomorrow, today marks the final opportunity for shareholders to buy into the company and qualify for both benefits. The announcement sent ripples through the specialty packaging sector as the stock trades near all time high.
The company will first execute a 1:5 stock split, subdividing each existing equity share of face value ₹10 into 5 new shares of face value ₹2 each. Immediately following this split, Cool Caps will issue bonus shares in a 1:1 ratio – granting one free share for every new split share held.
Here’s how the math works for investors:
For every single share purchased at today’s price of ₹825, shareholders will receive five shares post-split. These five shares then qualify for the 1:1 bonus, resulting in ten total shares per original share held. This effectively reduces the per-share cost basis to just ₹82.50 while significantly increasing liquidity.
The corporate action comes as Cool Caps rides a 137% one-year rally, with its market capitalization standing at ₹954 crore. Incorporated in 2015 as a subsidiary of the Purv Group, the company manufactures critical packaging components including plastic bottle caps, PET preforms, shrink films, and recycled PET products for major beverage brands.
Market analysts emphasize the urgency for investors. Anyone buying shares after today’s session will miss both benefits, cautioned a market expert. Post-July 4, the stock will trade at split-adjusted prices without bonus entitlements. The ex-date triggers automatic price adjustments – shares will open near ₹165 post-split (₹825 ÷ 5) before bonus accounting.
The move signals Cool Caps’ confidence in maintaining its explosive growth trajectory. The split aims to attract retail investors by making shares more affordable, while the bonus rewards existing stakeholders during this expansion phase.
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