Premier Explosives shares up 17%, cross 52-week high as company mulls stock split

Premier Explosives, a key player in the manufacturing of solid propellants for the defence sector, surged to a 52-week high at the stock markets during the early trading hours on Tuesday, April 9.

The spike in the value of shares came after the company, shortly before the trading hours began, informed the bourses that its board of directors would meet on April 19 to “consider a proposal of sub-division/split in the face value of equity shares”.

The announcement led to a strong start for Premier Explosives on the exchanges, with the shares zooming by over 17% at around 10:30 am. At the National Stock Exchange (NSE), the scrip was valued at ₹1,983.5 apiece at 10:43 am, up 17.36% as against the previous day’s close.

Fundraise plan

Apart from informing the exchanges that its board will mull over a stock split proposal next week, Premier Explosives also noted that a fundraise plan would be taken into consideration.

The board will “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,” the regulatory filing stated.

The fundraise plan would be subject to regulatory approvals, and would also require the nod from shareholders, it added.

In the quarter ended December 2023, Premier Explosives had reported a net profit of ₹1.71 crore, which was up 172% as compared to the year-ago period. The total income grew 24.5% to ₹47.4 crore during the period.

Year-to-date, Premier Explosives stock has climbed by around 26.3%, after factoring in the gains made during the early trading session on April 9. Over the past year, the shares have risen by 377.4%.