Jindal Worldwide’s shares hit a record high of ₹463.90 on January 8, 2025, soaring 4% after the company announced a generous 4:1 bonus share issuance. This means for every share an investor holds, they will receive four fully paid-up equity shares. The announcement not only boosted investor sentiment but also reinforced Jindal’s commitment to rewarding shareholders.
Let’s dive into the details of this bonus issue and understand what’s behind the company’s continued growth.
Details of the bonus issue
The bonus shares will be issued from Jindal Worldwide’s free reserves or securities premium account, with March 31, 2024, as the cut-off date. The board approved this proposal on January 7, 2025, with the bonus shares expected to be credited by March 6, 2025.
Here’s a breakdown of the bonus issue process:
| Aspect | Details |
| Bonus Ratio | 4:1 |
| Approval Date | January 7, 2025 |
| Crediting/Dispatch Date | By March 6, 2025 |
| Source of Bonus | Free reserves/securities premium account |
Upon issuance, Jindal’s paid-up share capital will expand significantly – from ₹20.05 crore to ₹100.26 crore. This translates to 100.26 crore fully paid-up shares, reflecting Jindal Worldwide’s strong financial position.
Stock performance and market reaction
Jindal Worldwide’s stock has been on a winning streak, posting a 73% rise from its 52-week low of ₹268 recorded in January 2024. Over the past year, the stock has gained 44%, outperforming the Nifty 50’s 10% growth in the same period.
Here’s a snapshot of Jindal Worldwide’s price movements:
| Time Period | Stock Performance |
| Past 12 months | Up 44% |
| December 2024 | 25% growth |
| January 2025 (till date) | 15% growth |
| 52-week High | ₹463.90 (January 2025) |
| 52-week Low | ₹268 (January 2024) |
Jindal Worldwide’s smallcap status and remarkable growth have caught the attention of investors. Even with market fluctuations, the stock has delivered solid returns.
Also read: Nifty 50 Forecast 2025: Bulls Tipped to Dominate, 5 Stocks …
Jindal Worldwide: A legacy of growth
Founded in 1952, Jindal Worldwide is part of the ₹18,000 crore BC Jindal Group. The company is a key player in both the textiles and steel industries. Jindal operates two large factories in West Bengal and exports steel products to Latin America and the Far East, reflecting its global footprint.
Their expansion and innovative business strategies, including the bonus issue, signal Jindal Worldwide’s focus on long-term growth.
Financial growth and capital expansion
As part of this bonus initiative, Jindal Worldwide plans to boost its authorised share capital by altering the capital clause in its Memorandum of Association. This will further strengthen the company’s equity structure, supporting future growth.
Here’s what the capital restructuring looks like:
| Pre-Bonus Capital | Post-Bonus Capital |
| ₹20.05 crore (20.05 crore shares) | ₹100.26 crore (100.26 crore shares) |
Jindal Worldwide’s growth reflects its robust strategy and investor confidence.
Why are investors excited about the bonus issue?
Advantages:
- Increased Liquidity: More shares in circulation could lead to better trading volumes.
- Shareholder Rewards: Bonus issues attract long-term investors, enhancing shareholder value.
- Sign of Strength: Issuing bonus shares signals the company’s confidence in its financial health.
Disadvantages:
- Dilution of EPS: While the total value remains the same, earnings per share (EPS) might reduce temporarily.
- Short-term Volatility: The market might witness some price fluctuations as shares adjust post-bonus issue.
The bigger picture: Market performance
Over the last six months, Jindal Worldwide’s stock surged 33%, outpacing the BSE Sensex, which dropped 2.4%. This performance has cemented Jindal’s position as a strong player in the market, despite market-wide corrections.
| Metric | Jindal Worldwide |
| Market Capitalisation | ₹9,125.68 crore |
| P/E Ratio | 155.22x |
| Earnings Per Share (EPS) | ₹3.95 |
This growth highlights Jindal’s solid market position and investors’ bullish outlook.
Conclusion
Jindal Worldwide’s 4:1 bonus issue has not only driven its stock to record highs but also reaffirmed its commitment to shareholder value. With consistent growth, expansion plans, and a strategic vision, Jindal Worldwide continues to be a standout performer in the steel and textile sectors.
As the market gears up for the bonus shares to hit accounts by March 2025, all eyes are on how Jindal Worldwide will leverage this momentum for future growth.
