1:1 Bonus Issue: NBFC Stock Hits New 52-Week High On Fixing Record Date For Bonuses, Gives 247% Returns

Paisalo Digital, an NBFC stock, that trades at around Rs 145 apiece, scaled up to a new 52-week high on Friday as the company fixed a record date for its bonus issue in the ratio of 1:1. The stock has also gained by a whopping 247% from its 52-week low of Rs 42.01 apiece.

On BSE, Paisalo stock price ended at Rs 142.95 apiece, up by 6.12% with a market cap of Rs 6,418.77 crore on Friday. The smallcap touched a fresh 52-week high of Rs 145.90 apiece in the day's trading hours before correcting slightly.

From a 52-week low of Rs42.01 apiece, the stock has gained by at least 247.29% on BSE. Not just that, the stock's six-monthly returns to investors are up to 130%. In a year, the stock has rallied by 133%.

In its regulatory filing on Friday, Paisalo said, the Board members of the Company have fixed Wednesday, March 20, 2024, as the 'Record Date' for ascertaining the eligibility of shareholders entitled to issuance of Bonus Equity Shares of the Company.

That means that only those investors will be eligible who hold shares of Paisalo by the end of March 20, 2024. This will also be the ex-bonus date for the stock.

Paisalo's 1:1 bonus issue means that one new bonus Equity Share of Re. 1 each for every one existing Equity Share of Re. 1 each held by the shareholders of the Company as on the Record Date.

The Bonus Issue of Equity Shares is subject to shareholders' approval which is sought through Postal Ballot (The voting period starts from February 8, 2024, to March 8, 2024).

Here are some key important pointers that investors should not miss out on to be eligible for Paisalo's bonus issue.

Listed companies announce bonus issues from their free reserves and surplus, and it is also an attempt to increase fresh capital into the stock. The bonus shares are new shares which are issued by the companies at the existing Face Value of equity shares. They are issued free of cost. Also, face value remains the same post-bonus issue.

The benefits of the bonus issue are that the number of outstanding shares rises, liquidity picks up, and implicit value per equity share.

Paisalo Digital Limited leverages Artificial Intelligence and Machine Learning to offer intelligent and hassle-free loans through a high-tech: Touch approach. With a robust distribution network in rural and semi-urban areas of India, Paisalo has serviced over 15 lakh borrowers and has 1052 touchpoints across the country. The company is at the forefront of co-lending and are pioneer in seamless credit distribution services to the bottom of the pyramid by administration of small-ticket loans, as per its LinkedIn profile.

Disclaimer: The stock highlights the bonus issue and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.