Astral Poly jumps 5% on fixing record date for 1:3 bonus share issue

The company has fixed March 19 as the record date for the 1:3 bonus share issue

Shares of Astral Poly Technik advanced 5 per cent to Rs 2,332 on the BSE in Monday's intra-day trade after the company said it has fixed March 19 as the record date for the 1:3 bonus share issue. The stock of the plastic products manufacture surpassed its previous high of Rs 2,249.95 touched on March 2.

“The company has fixed Friday, March 19, 2021, as the record date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of bonus equity shares in the proportion of 1 equity share of Re 1 each for every 3 existing equity shares of Re 1 each, subject to the approval of shareholders which is being obtained through postal ballot,” Astral Poly Technik said in an exchange filing. READ HERE

In the past three months, the stock has outperformed the market by surging 65 per cent as compared to an 11 per cent rise in the S&P BSE Sensex.

India’s second-largest plastic pipe maker Astral Poly Technik has made its foray into plastic storage tanks. The company acquired assets of Shree Prabhu Petrochemicals (SPPL) for Rs 51 crore. The company is planning to start tank production in Ahmedabad from April 2021 under the brand name ‘ASTRAL’.

The management said the recovery in sales in pipe and adhesives segments has picked up momentum from the July-September quarter (Q2) onwards and further accelerated in the October-December quarter (Q3).

Analysts at Edelweiss Broking remain positive on Astral due to its strong brand, new product launches, which should continuously increase its addressable market size, and pickup in its core business of plastic piping, backed by the revival in the urban real estate market and government's Jal Jeevan Mission program.