Shantai Industries Ltd, a long-standing player in India’s textile sector, has officially announced a 1:5 stock split, with the record date fixed for May 9, 2025. The move comes as part of the company’s efforts to enhance share affordability, broaden investor participation, and build long-term shareholder value.
This marks the first major corporate action by the company since 2017, when it last issued a 2:1 bonus. With renewed momentum in its core business and a stock price nearing its historical highs, Shantai’s decision to split its shares reflects a confidence in its financial recovery and growth outlook.
Stock Split Details
- Split Ratio: 1 equity share split into 5
- Old Face Value: ₹10 per share
- New Face Value: ₹2 per share
- Record Date: May 9, 2025
All shares post-split will retain the same rights and obligations, and will be fully paid-up. The reduced face value is expected to make shares more accessible to retail investors, potentially increasing market liquidity and long-term ownership distribution.
About Shantai Industries Ltd
Founded in 1985, Shantai Industries Ltd is a textile and garment manufacturing company headquartered in Surat, Gujarat. It specializes in synthetic textile products and readymade garments, with a notable focus on exports. Over the decades, the company has positioned itself as a reliable supplier of fine-quality synthetic fabrics catering to both domestic and international markets.
The company operates in a highly competitive yet resilient sector, with textiles being a cornerstone of India’s export economy. Shantai’s long-standing presence, sectoral experience, and niche product specialization offer it an advantage, especially during periods of recovery in global demand for affordable synthetic garments.
Financial Performance
Shantai Industries has recently shown signs of a financial turnaround, particularly evident in its Q3 FY24 (Dec 2024) earnings:
- Revenue: ₹8.22 crore (compared to ₹0 in Q3 FY23)
- Net Profit: ₹0.10 crore (vs. a net loss of ₹0.06 crore in Q3 FY23)
The company recorded no revenue in the same quarter last year, highlighting the significance of this recovery. The shift from losses to profits, albeit modest, signals improving business conditions, possibly driven by higher order inflow, cost efficiency, or recovery in export demand.
This return to profitability is notable for a company of its size—market capitalization of approximately ₹11.17 crore—and underlines the management’s effort to stabilize operations and regain growth footing after a subdued performance period.
Corporate Strategy and Outlook
The stock split appears aligned with Shantai Industries’ broader strategy to reposition itself among small-cap value opportunities. For a company with a relatively low market capitalization and limited public float, increasing accessibility through smaller denomination shares could generate more interest among retail investors and institutional small-cap funds.
Moreover, with India’s textile exports expected to benefit from shifting global supply chains and favorable trade policies, companies like Shantai—with export readiness and manufacturing capacity—could be well-placed to benefit.
The fact that this is Shantai’s first corporate action in over eight years adds weight to the significance of this decision. It may also signal management’s renewed focus on enhancing shareholder engagement and signaling confidence in long-term prospects.
Conclusion
Shantai Industries Ltd’s stock split is more than a cosmetic change—it reflects a company in transition. With revenues returning, a profitable quarter after losses, and a legacy of nearly four decades in textiles, the company appears to be entering a new phase. The May 9 record date could mark a turning point in how the market perceives this low-profile textile exporter.
For investors seeking exposure to India’s textile sector through emerging players, Shantai may warrant a closer look—especially now that it is actively working to make its stock more accessible.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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