1:1 Bonus Issue Record Date: Below Rs 150, Penny Stock Ex-Bonus On April 8, Gives 130% Returns YTD

Promax Power, engaged in the civil construction segment, will be in focus on BSE and NSE during the trading session of April 8. That is because this penny stock which trades below Rs 150 will be turning ex-bonus for the ratio of 1:1.

Last week, on Friday, Promax's share price stood at Rs 137.85 apiece with a market cap of Rs 172.31 crore. The stock's 52-week high is Rs 185.64.

But Promax is a multi-bagger as it has rallied by a huge 301.07% from its 52-week low of Rs 34.37 apiece. YTD, the stock is up by 132.14%. While in a year, the stock zoomed by 198% on the exchange.

Promax will turn ex-bonus on April 8, while it will determine eligible shareholders for the allotment of bonus equity shares on the record date of April 9, 2024. This means that to be eligible, shareholders should have shares of Promax by the end of April 9 into their systems.

The company will allot bonus shares in the ratio of 1:1. At a 1:1 bonus ratio, Promax will reward 1 bonus share on existing 1 equity share.

Promax offers high-quality professional solutions, design and engineering services to its customers. The company is into executing turnkey Power, substations, transmission lines, Hydro, distribution, electrification, Civil construction, Pre-engineered buildings, High Rise buildings, Sewerage and Water treatment projects.

"Promax Power is bearish on the Daily charts with strong resistance at 142. A Daily close below support of 130 could lead to a target of 104 in the near term," AR Ramachandran from Tips2trades said.

Bonus shares are free of cost given by listed companies to their existing shareholders from their profitability of respective financial years. In bonus issues, new equity shares are issued by the companies on existing shares in a specific ratio, however, face value remains the same post-bonus. I