The company, which is a leading leather shoe manufacturer and exporter, posted net profit of almost Rs 56 crore in the previous quarter
Shares of Mirza International gained 10 per cent on the BSE today and touched Rs 54.91, marking over 70 per cent gain from its price a week ago. The company, which manufactures and exports leather shoes and allied products, had recently demerged its branded business RedTape Ltd into a separate entity.
The record date for the demerger was 29 March 2023. A day prior to that, shares of Mirza International had closed at Rs 252.45, and on the record day it opened lower at Rs 33.05 in the Bombay Stock Exchange (BSE). It was also the ex-date for the company's merger with RTS Fashion, an entity owned by the same promoter group.
Since the demerger, the scrip has gained 66.14 per cent. As per the demerger agreement that was approved by the National Company Law Tribunal (NCLT), shareholders of Mirza International will receive one fully paid-up equity share of RedTape, with a face value of Rs 2, for each share they hold in Mirza International.
In the December 2022 quarter, Mirza International posted net profit of Rs 55.93 crore. This was 31.32 per cent higher than the profit it raked in during the year-ago quarter. Further, the company's earnings per share (EPS) increased from Rs. 3.54 in December 2021 to Rs. 4.65 in December 2022.
In the one-year period prior to the demerger, Mirza International gave a return of 60.58 per cent. The leading shoe export company owns a variety of brands in its portfolio such as Oaktrak, MODE & Bond Street.
Shares of RedTape are expected to get listed on the bourses soon.