KPR Mill rallies post stock split, gains 20% in 2 trading sessions

The stock quoted ex-split from Friday onwards, and in the last one month had rallied 42 per cent.

Shares of KPR Mill hit a fresh all-time high at Rs 503.60, on rallying 9 per cent on the BSE in intra-day trade on Monday. The stock of the company engaged in textiles and sugar segments has surged 20 per cent after it turned ex-stock split for 1:5 on Friday.

“The board of directors of the company for sub-division of equity shares has fixed Monday, the 27th September, 2021 as the record date for determining the members of the Company who are entitled for the sub-divided equity shares of the face value of Re 1 each,” KPR Mill had said on September 11, 2021.

On July, 27, 2021, the board of KPR Mill had approved stock split to improve liquidity and broad base small investors.

In past one month, the stock soared 42 per cent, as compared to 7.2 per cent rise in the S&P BSE Sensex. In six months, it zoomed 137 per cent, against 23 per cent gain by the benchmark index.

The Indian apparel companies are expected to achieve double-digit growth in the financial year 2022, however on a low base. The Government of India has also realized the importance of supporting this segment.

The Union Budget announcement to launch seven mega textile parks in three years (two parks in Tamilnadu) to enable the textile industry to attract large investments, employment generation, and become globally competitive, is really a significant boost to the Indian textiles sector, KPR Mill said in 2019-20 annual report.

This scheme is expected to create world class infrastructure, with plug-and-play facilities to enable and create global champions in exports. With the large international buyers already looking at increasing their sourcing from India, the formation of textile parks helps India gather a bigger share of the apparel and textile export trade. Details are awaited from the Government, it added.

At 10:35 am; the stock was up 5.6 per cent at Rs 488 on the BSE, as compared to 0.11 per cent rise in the S&P BSE Sensex. A combined 614,000 equity shares had changed hands at the counter on the NSE and BSE.