1:1 Bonus Shares For Shareholders: To Be Credited In 2 Months; Buy Penny Stock Below Rs 10?

With a market valuation of Rs 66.25 Cr, Garment Mantra Lifestyle is a micro-cap company in the textile industry. The company is a top producer, distributor, and trader of knitted garments and products. A closer look will be given to penny stock below Rs. 10 as the corporation has announced bonus shares at a 1:1 ratio. The BSE closing price of Garment Mantra Lifestyle's shares today was Rs 6.60, down 0.15%, subsequent to the announcement. '

Garment Mantra Lifestyle Bonus Shares

"The Board has approved the issue Bonus shares out of free reserves and securities premium account to the existing equity shareholders in the ratio 1:1 (one equity share for every one equity share of nominal value of Rs.1/- each) subject to approval of shareholders and regulatory authorities. The Bonus Shares once allotted shall rank pari- passu in all respects and carry the same rights as the existing Equity Shares," said the company in a regulatory filing on Monday.

"The Board approved to convene the Extra - Ordinary General Meeting of the company on 03rd August, at 11:00 am at Swaad Mantra Hotels and Restaurants, Tirupur to approve the Issue of Bonus Shares and to increase the Authorized Share Capital of the Company," Garment Mantra Lifestyle further informed to stock exchanges.

The pre-bonus issue paid-up equity share capital as of the date is Rs. 10,03,84,050 /- consisting of 10,03,84,050 equity shares of Re. 1/- each while the post-bonus issue paid up equity share capital will be Rs. 20,07,68,100/- consisting of 20,07,68,100 Equity shares of Re. 1/- each, according to the company which will be credited within 2 months from the date of approval of the Board of Directors.

Garment Mantra Lifestyle Authorized Share Capital

"The Board has approved the increase in Authorized Capital of the Company from existing Rs. 37,00,00,000/- (Rupees Thirty-Seven Crores Only) divided into 37,00,00,000 (Thirty-Seven Crores) of Rs.1/- (Rupees one each) to Rs. 52,00,00,000/- (Rupees Fifty-Two Crores Only) divided into 52,00,00,000 (Fifty-Two Crores) Equity Shares of Rs. 1/- (Rupees One) each subject to approval of Shareholders," said the company in a regulatory filing on 8th July.

Garment Mantra Lifestyle Share Price Target

"Small-cap company Garment Mantra Lifestyle Ltd is trading at Rs.6.75, and its current movement has garnered positive attention from short-term and mid-term investors. The stock has offered a one-year return of 32.73%, reflecting its decent financial standing. Hence, those looking for short-term and mid-term gains can consider entering the stock at the buying range of Rs.6.50-6.70. For a target price of Rs.7.5-11, I recommend a holding period of 2-10 weeks. However, I encourage traders and investors to set a stop loss at Rs.5.50 and follow it strictly," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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