1:10 Stock Split, 4:1 Bonus Issues: Penny Stock Hits Back-To-Back 5% Lower Circuits For 7-Days In Row, Falls 2

Maagh Advertising and Marketing Services has turned ex-split and ex-bonus since February 5th, and it enjoyed a bull run for quite a few days, hitting a 52-week high of Rs 19.10 apiece. However, Maagh has recorded massive selling pressure with no buyers for seven days straight. That is because, the stock has been hitting back-to-back lower circuits since February 16, 2024. In seven days, Maagh shares have plunged 22%.

On BSE, Maagh shares froze at 5% lower circuits to Rs 15.35 apiece on Tuesday with a market cap of Rs 345.39 crore. While the stock's 52-week high and low is Rs 19.10 apiece and Rs 1.12 apiece.

From February 16 to February 27the, Maagh shares have nosedived by at least 21.8% on BSE.

Maagh Advertising and Marketing Services Stock Split:

MAAGH Advertising turned ex-split on February 5. The company took on record the allotment of Equity Shares in the ratio of 10 (Ten) Equity Shares of Rs. 1/- (Rupee One only) each for every 1 (One) Equity Share of Rs. 10/- (Rupees Ten only) each held by the members as on record date.

So if an investor held 500 shares of MAAGH Advertising, their shareholding will rise to 5,000 shares (500X10) post-ex-split date.

Notably, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

Maagh Advertising and Marketing Services Bonus Issue:

Further, the company allotted 4,50,02,500 Equity Shares of Rs. 1/- each as Bonus Shares in the ratio of 1 (One) Equity Shares for every 4 (Four) Equity Shares held to the eligible Shareholders as on record date ie. 05th February 2024. The Bonus Shares Issued is a post-sub division.

The ratio of bonus issues is 4:1 which means that Maagh allotted 4 bonus shares on the existing 1 equity share.

So for example, adjusting to the stock split, on 5,000 shares of MAAGH, you will receive 20,000 bonus shares (5000 X4/1), taking your total holding to 25,000 shares.

Just like stock split, bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

Maagh Advertising gathers campaign-specific market & competitor data, intelligent insights, audience interests, etc. to serve businesses of every scale in major industries. Among our service areas are Radio, Television, Cinema, Print, Digital, & Outdoor. The company's data-driven advertising solutions help businesses achieve their marketing goals. Delivering campaigns that are optimized at every point of the campaign journey.

Also, the company's Media Planning & Advertising Company provides ROI-driven results by giving companies the perfect media mix to overcome their marketing challenges.

Disclaimer: The write-up highlights about the latest performamces and corporate actions, 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.