1:1 Ratio: NBFC Stock Announces 2 Big Updates On Bonus Shares; Buy?

As of Wednesday's closing session, Paisalo Digital Ltd., a small-cap NBFC, has a market valuation of Rs 5,029.05 Cr. The stock closes at Rs 112, close to its lower circuit limit of Rs 100.80, after plunging 19.86% on the BSE. The company has announced a major update regarding bonus share allotment in a 1:1 ratio. The scrip reached a 52-week-high of Rs 199.25 on (01/03/2024) and a 52-week-low of Rs 42.01 on (11/07/2023).

Paisalo Digital Bonus Share Update

"With reference to issue of Bonus Equity Shares, we wish to inform that BSE Limited and National Stock Exchange of India Limited vide their letters dated March 12, 2024 having reference no. LOD/Bonus/BN-IP/VK/1402/2023-24 and NSE/LIST/40058 respectively have granted in-principle approval under Regulation 28(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, for issue and proposed allotment of 44,90,21,990 Equity shares of Re.1/- each as bonus share in the ratio of 1 new equity share for every 1 existing equity share held in the Company. As intimated on February 16, 2024, the record date to determine entitlement of eligibility of shareholders for Bonus Shares shall be Wednesday, March 20, 2024," said Paisalo Digital in a stock exchange filing on Wednesday, March 13, 2024.

Paisalo Digital Bonus Share News

"Pursuant to Regulation 29 and Regulation 50 and any other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that meeting of Operations and Finance Committee of the Board of Directors of Paisalo Digital Limited is scheduled to be held on March 21, 2024 to consider and approve the allotment of Bonus Equity Shares in the ratio of 1:1 i.e. 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 i.e. March 20, 2024," said the company in a separate stock exchange filing on March 13, 2024.

Paisalo Digital Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, PAISALO, currently trading at Rs 112.2, has recently experienced a breakdown below Rs 120, resulting in a more than 42.52% correction in the stock price over the past 4 days. The immediate support has been identified near the Rs 108 level, and the current price indicates a bearish momentum, with expectations for a continuation towards the Rs 100 level. On the flip side, strong resistance is observed near Rs 130.

Furthermore, PAISALO is trading below key Exponential Moving Averages (EMAs), including the 20-day and 50-day, suggesting robust bearish momentum. The Relative Strength Index (RSI) is currently at 33.6, indicating bearish momentum in the stock.

In the event of a reversal from the Rs 108 to Rs 105 level, there may be a buying opportunity with a strict stop-loss (SL) set at Rs 100. If the price crosses the Rs 130 level, the stock could potentially move towards Rs 140 and Rs 150. Until a reversal confirmation is observed, the overall view on the stock remains bearish.

To manage risk effectively, it is advisable to implement a stop-loss (SL) at Rs 100 to protect the investment in case of an unexpected market turn. A prudent strategy would be to consider buying on dips if a reversal is seen near Rs 108 and Rs 105 levels, with a target set at Rs 140 and Rs 150 in the short run.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.