Raghav Productivity jumps 9% as board to meet on Oct 18 to mull bonus issue

The company's board is scheduled to meet on October 18 to consider a bonus issue, Q2 results, an increase in the company's authorised capital, apart from proposals for some investments

Raghav Productivity Enhancers shares soared 9.2 per cent on Friday, to record an intraday high of Rs 1,220.8.

The stock of the company climbed after it informed the bourses of a board meeting scheduled for October 18 to mull over a proposal to issue bonus shares. 

At around 12:32 PM, shares of Raghav Productivity Enhancers were up 7.64 per cent at Rs 1,203.1 per share. In comparison, the BSE Sensex was down 0.26 per cent at 81,401.39, around the same time.

The market capitalisation of the company stood at Rs 2,761.43 crore, around the same time.

"Meeting of Board of Directors of the Company for the F.Y. 2024-25 will be held on Friday, October 18, 2024, at 10:30 AM... To consider and approve the proposal for issue of bonus equity share subject to necessary approvals," the company's exchange filing read.

Meanwhile, the board will also consider the financial results for the quarter ended September 30, 2024, and an increase in authorised capital, along with a proposal for some investments. 

Prior to this, as per BSE corporate action data, Raghav Productivity Enhancers had issued bonus shares last year on August 8, 2023, in the ratio of 1:1. The company, on May 17, 2024, had given a final dividend of Rs 0.9 to its shareholders. 

"Recommended to the shareholders of the company final dividend of Rs. 0.90 per Equity Shares of Rs. 10 each for the financial year ended on March 31, 2024," the filing read. 

In the quarter ended June 30, 2024, the company had posted a net profit of Rs 8.28 crore, compared to Rs 5.73 crore, a year ago. Its revenue for the quarter (Q1FY25) stood at Rs 45.04 crore, compared to Rs 30.11 crore in the year-ago period. 

Raghav Productivity Enhancers is one of the largest manufacturers of Silica Ramming Mass in the world, according to its website. Silica ramming mass is a high-purity refractory material used to line induction furnaces, shielding them from extreme temperatures and chemical reactions during metal melting, while offering strong thermal and mechanical durability.

In the past one year, shares of Raghav Productivity Enhancers have gained 65 per cent, compared to the BSE Sensex's rise of 23 per cent during the same period.