Multibagger defence stock hits record high on stock split, fund raising plan

Shares of Premier Explosives Ltd are in news today after the firm said its board would consider a proposal of sub-division/split in the face value of equity shares of the company. It would also consider a proposal to raise funds in a meeting to be held on April 19.

Premier Explosives stock climbed 7.12% to a record high of Rs 1809 against the previous close of Rs 1688.65 on BSE. In one year, the multibagger stock has gained 320% and risen 14.15% since the beginning of this year. Total 6263 shares of the firm changed hands amounting to a turnover of Rs 1.11 crore on BSE today. Market cap of the firm rose to Rs 1914.49 crore. 

The company in a communication to bourses said, “1. To consider a proposal of sub-division/split in the face value of equity shares of the Company pursuant to the provisions of Section 61 of the Companies Act, 2013.

2. To consider the proposal to raise funds by issue of equity shares or convertible instruments by way of public issue, preferential Issue, private placement (including one or more qualified institutional placements), or through any other permissible mode and / or combination thereof as may be considered appropriate under applicable law, to eligible investors, subject to the receipt of the necessary approvals including the approval of the members of the Company and such other regulatory / statutory approvals as may be required, including approval of the notice to obtain shareholders' approvals in this regard and to approve ancillary actions for the above mentioned fund raising.

3. To consider postal ballot process to seek approval of the members in respect of the aforesaid proposals, as required and any other business with the permission of the Chair.”

Premier Explosives shares have a beta of 0.9, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 68.8, signaling it's trading neither in the overbought nor in the oversold zone. The share is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Premier Explosives Limited is primarily engaged in the manufacture of high energy materials and allied products for the defence, space, mining and infrastructure industries. The company's geographical segments include India and the Rest of the world. It is focused on developing and manufacturing solid propellants for rockets and strap-on motors for satellite launch vehicles.