Diamond Power Infrastructure Ltd. has recently announced its first-ever stock split in the ratio of 1:10, following an incredible surge in its stock price, which has skyrocketed from around ₹157 at the beginning of 2024 to approximately ₹1,865—representing a staggering return of over 1,102% in less than ten months.
This stock split is expected to enhance liquidity and make the shares more affordable for both new and existing investors. After the market closed on October 18, Diamond Power’s shares ended at ₹1,865.40, up by 3.5%, with a market capitalization of ₹9,830.12 crore. The stock also achieved a new 52-week high of ₹1,892.85 during the session. Over the past week, the stock has gained about 19.56%, and it has risen by 35.82% month-to-date. In just six months, it has rallied by 196.38%, while year-to-date, it has delivered a jaw-dropping 1,102.04% return.
As part of its regulatory filing, Diamond Power stated that the stock split is aimed at improving liquidity in the capital market and broadening its shareholder base, making the shares more accessible to retail investors. The record date for the stock split will be announced following the approval of the company’s shareholders at an Extraordinary General Meeting, and the company aims to complete the stock split within three months after receiving this approval.
This will mark the company’s first stock split since its last corporate action in 2013 when it issued a 1:3 bonus share and distributed a dividend of ₹1 per share.
To illustrate the potential gains for investors, if someone had invested ₹5,000 at the start of January 2024 when the stock was priced at ₹157, they would have acquired 19 shares. With the current value reflecting a gain of 1,102.04%, their investment would be worth approximately ₹60,102. Following the stock split, those 19 shares would increase to 190 shares (19 x 10).
In addition to the stock split, Diamond Power plans to invest in its wholly-owned subsidiary, DICABS Nextgen Special Alloys Pvt. Ltd., focusing on the manufacturing of wire rods and various electrical components. This expansion includes setting up three rod mills with a capacity of 75,000 metric tons per annum, aimed at enhancing the company’s leadership position in next-generation conductors for power transmission. This project is estimated to cost ₹50 crore and is expected to commence production in phases from December 2024 to September 2025.
Founded in 1970, Diamond Power Infrastructure has grown from a small ACSR conductor manufacturer to India’s largest integrated manufacturer of power transmission equipment and a turnkey services provider, with in-house manufacturing facilities for cables, conductors, and transmission towers.
Disclaimer: This content is for informational purposes only and should not be considered as financial advice. Investing in stocks involves risks, and past performance is not indicative of future results. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author does not assume any liability for losses or damages arising from the use of this information.
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