Jai Balaji Industries Ltd, a leading name in the Indian iron and steel industry, has announced its first-ever stock split, aimed at increasing liquidity and attracting a broader base of investors. As per the company’s recent filing, each equity share with a face value of ₹10 will be subdivided into five shares with a face value of ₹2. The record date for the stock split is set for January 17, 2025, ensuring shareholders on this date are eligible for the split.
Stock Split Details
- Current Face Value: ₹10 per share.
- New Face Value: ₹2 per share.
- Split Ratio: 5:1 (one share splits into five).
- Record Date: January 17, 2025.
- Paid-up Capital: Unchanged at ₹1,82,45,02,860.
This strategic move is designed to improve the stock’s affordability, especially for retail investors, while enhancing trading volumes and overall market liquidity.
Financial Performance
Despite challenges in the industry, Jai Balaji Industries has demonstrated resilience:
- Q2 FY25 Revenue: ₹1,556.6 crore, marking a slight 0.6% increase year-on-year.
- Q2 FY25 Net Profit: ₹153.2 crore, down 24% YoY, reflecting market pressures.
- EBITDA Growth: 7% increase, rising to ₹228.3 crore in Q2 FY25 from ₹213.4 crore in Q2 FY24.
- H1 FY25 Revenue Growth: 8% increase year-on-year, coupled with a robust 30% growth in EBITDA.
The company’s EBITDA margin improved to 14.7%, up from 13.8% in the previous year, showcasing operational efficiency and cost management.
About Jai Balaji Industries
Established in 1999, Jai Balaji Industries is a fully integrated steel producer with a diverse product portfolio, including:
- Core Products: Sponge iron, pig iron, steel billets, and TMT bars.
- Specialized Offerings: Ductile iron (DI) pipes and special-grade ferroalloys.
With four state-of-the-art production facilities in West Bengal and Chhattisgarh, the company is among the largest private steel manufacturers in Eastern India. Its exports span major international markets, strengthening its global footprint.
Growth Initiatives and Market Outlook
Jai Balaji Industries has ambitious expansion plans:
- DI Pipe Production: Targeting an increase to 4 lakh tons.
- Value-Added Products: Aiming for these to contribute 80% of revenue.
- Revenue Goals: Anticipating a 25-30% increase in revenue for FY25.
The announcement of the 5:1 stock split marks a pivotal moment in Jai Balaji Industries’ journey, signaling its commitment to enhancing shareholder value and accessibility.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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