The shares of Colorchips New Media Ltd hit the upper circuit on Monday. The company’s shares are locked at 131.75 apiece, up 4.98% and it has announced the sub-division of its equity shares in the ratio of 1:5.
Colorchips New Media Ltd is a lesser-known media company that is engaged in the business of film production, exploitation and distribution. It works across multiple formats globally, including cinema, digital, home entertainment and television syndication. It owns digital and other rights for over 4,000 feature films in seven Indian languages. It has more than one crore subscribers on YouTube.
The company in an exchange filing announced that its board had recommended a stock split in the ratio of 1:5, from the face value of ₹10 each to the face value of ₹ 2 each. This is subject to approval from the company’s shareholders. Further, the company is yet to fix the record date for the stock split.
The subdivision of the share will be undertaken within six months of receiving approval from the shareholders, as per the filing. The company will have to amend its Memorandum of Association (MoA) to increase its share capital, post the sub-division of its shares. Moreover, its authorized share capital will increase to 9.25 crore shares with a face value of ₹ 10 each from ₹ 1.85 crore shares with a face value of ₹ 2 each.
The stock came into focus as it attracted a ₹200 crore investment from Gem Global Emerging Markets, which is an alternative investment group that manages a diverse set of investment vehicles focused on emerging markets across the world.
Colorchips New Media Ltd’s shares climbed 21.43% in the past five days and 13.675% in the past month. As a result, its market capitalization increased to 224.11 crores. In fact, as per year-to-date data, it has given multibagger returns of a whopping 465.45%. This means that if an investor had invested ₹ 1,00,000 in the company’s shares at the beginning of this year, the value of their holdings would have been ₹ 4,65,450 today!
Written by Simran Bafna
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