This multibagger stock announced a demerger; do you own it?
The scrip has given multibagger returns of more than 140% in just a year.
Why the demerger?
On February 16, 2023, the company announced the demerger of the traditional textiles processing division and wind power division of the demerged company along with the existing investment of the demerged company in its wholly owned subsidiary company namely Mahalaxmi Exports.
Also, the scheme of arrangement provides for the demerger of the trading textiles division of the demerged company and vesting the same into the second resulting company. Post demerger, rubber/technical textiles division and weaving division shall be the remaining business of the demerged company.
The company is embarking upon the agenda of rapid growth and development over the coming years with a clear focus on its core business in three different verticals i.e. rubber/technical textiles division, traditional textiles processing division and trading textiles division. It is therefore decided to create a simpler group structure wherein emphasis will be on the growth of all three divisions through different verticals. It is felt that such a structure will help effectively focus on the core competence of each of these three different divisions.
Stock price movement
Post the announcement of the demerger news on the aforementioned date, the stock surged more than 9% in just 5 trading sessions and hit a new 52-week high of Rs 308.40 apiece on February 21, 2023.
On February 24, shares of Mahalaxmi Rubtech witnessed some profit booking and traded 1.35%t down to Rs 296.70. The scrip has given multibagger returns of more than 140% in just 1 year and more than 70% in just 6 months. Keep a close eye on this trending multibagger stock.
Mahalaxmi Rubtech is a textile manufacturing company and a part of the Mahalaxmi Group of Industries. It is engaged in the manufacturing and marketing of products of traditional textile and technical textiles. In 2008 it merged with Mahalaxmi Fabric Mills Pvt Ltd and started textile manufacturing and is also exporting its products.
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