1:1 Bonus Issue, 10:1 Stock Split: 2 SmallCap Stocks In Focus This Week

Two small-cap stocks will be in focus in the trading week from August 6th to 11th because they will turn ex-date for their bonus issue and stock splits. These are Raghav Productivity Enhancers and Mena Mani Industries. Ahead of the corporate actions, these stocks have gained on exchanges.

Bonus equity shares are issued in a certain proportion by a listed company only to their existing shareholders. Here, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

Meanwhile, a listed company carries a stock split of already owned equity shares which are sub-divided into smaller shares. The action is done to make the stock affordable and improve liquidity. Also, the face value of a stock declines after the stock split.

1. Raghav Productivity Enhancers:

On BSE, the company's stock ended at Rs 1094.80 apiece, up by Rs 24.75 or 2.31% on Friday. The company's market cap is over Rs 1,256 crore.

In its regulatory filing, the company declared a bonus issue in the ratio of 1:1. Simply put, the company will issue one bonus equity share having a face value of Rs 10 each for every existing per equity share having a face value of Rs 10 each.

The record date for bonus equity shares is fixed on August 8, 2023.

Hence, the stock will turn ex-bonus on the same day as the record date.

In the June 2023 quarter, the company's net profit stood at Rs 5.95 crore as against Rs 5.82 crore in the same quarter a year ago. Revenue from operations stood at Rs 30.17 crore versus Rs 33.46 crore in Q1FY23.

Raghav Productivity Enhancers is the world's largest manufacturer of silica ramming mass. It exports to over 30 countries in Asia, Africa and Middle East countries. It is one of the only silica ramming mass players to break geographical barriers due to its superior product quality and customisation processes achieved through extensive R&D over the last 10 years.

Mena Mani Industries:

Ahead of the ex-split date, Mena Mani's share price ended at 5% upper circuit to Rs 37.22 apiece on BSE during Friday's trade. Its market cap is over Rs 37 crore.

As per the regulatory filing, the company will carry a stock split in the ratio of 10:1.

That means, one existing shares having a face value of Rs 10 each, will be sub-dividend into ten equity shares having a face value of Re 1 each.

The reason behind the stock split is to enhance the liquidity of Equity Shares and widen the shareholders' base by making the Equity Shares more economical to the investors.

The record date for the stock split is August 11, and hence, Mena Mani shares will trade ex-split on this day.

Mena Mani Industries is an integrated entity that operates in the trading of Bio fuel and carry out construction, and other information technological activities. The company aims to become a leader in the execution of undertaken endeavour.