1:1 Bonus Shares, Record Nears To 3 Days: Bet On The Debt Free Stock?

Fiem Industries is a consumer discretionary small-cap company with a market capitalization of Rs 3,249.69 Cr. It is involved in the production and distribution of automotive parts for leading automakers in India. Being a debt-free company, market watchers are likely to keep a close watch on the shares of Fiem Industries as the stock shall trade ex-bonus after 3 days. The company has fixed February 28, 2024 as the record date for the purpose of recommended issue of bonus shares to the shareholders.

Fiem Industries Bonus Shares

"Board considered and recommended the issue of Bonus Shares to the shareholders of the Company in the ratio of 1 (one) Bonus equity share of Rs. 10 each fully paid-up for every 1 (one) existing equity share of Rs. 10 each fully paid-up (in the ratio of 1:1) held by the shareholders as on the "Record Date", subject to approval of the shareholders and other regulatory approval, as may be required in this regard," said Fiem Industries in a regulatory filing.

Fiem Industries Bonus Share Record Date

"In compliance of Regulation 42 of Listing Regulations, it is hereby informed that February 28, 2024 has been fixed as 'Record Date' for the purpose of determining the eligibility of shareholders/beneficial owners, who shall be entitled to receive the Bonus shares, if approved by the shareholders through the process of Postal Ballot. In order to facilitate hassle free and smooth processing and completion of all the events related to issue of Bonus Shares within the stipulated timeframe, the Board has constituted a Board Committee, namely "Bonus Shares Committee" authorizing it to approve and complete all requisite acts and deeds, including allotment of Bonus Shares, if approved by the shareholders," said the Board of Directors of Fiem Industries in a stock exchange filing.

The bonus shares would be credited to the respective demat account of the shareholders on or before March 15, 2024, subject to approval of shareholders and completion of requisite formalities, according to the company.

Fiem Industries News

The firm recently achieved a significant milestone in the passenger car segment on February 12th when it was chosen to supply full LED headlamps for a premium European car. It was also disclosed that the company has started working on the design and development of the purchase order after receiving it together with the advance payment. The firm plans to begin producing Full LED Head Lamps in the fourth quarter of the 2024-2025 fiscal year. This will be an export venture for the company.

Fiem Industries Share Price Target

FIEM Industries was overbought & slightly bearish on the Daily charts with strong resistance at 2590. A daily close below support of 2400 could lead to a target of 2118 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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