Power-generating company, Ujaas Energy's share price will be in focus during the trading session between September 16-20. This is because the company is going to turn ex-date in five days for its upcoming bonus issue allotment of 1:4. It needs to be noted that there is a restriction in trading under Ujaas Energy as the company is undergoing bankruptcy procedure.
Ujaas Energy Share Price:
On September 14, the smallcap stock ended at Rs 532.65 apiece, which is its 5% upper circuit and new 52-week high. The stock has been hitting back-to-back upper circuits in the past few months of 2024. Its 52-week low is at Rs 2.05 apiece.
The stock has gained by 1,862.60% in FY25 so far. In a year, the stock has surged by 22,186.61% on BSE.
Currently, on Ujaas Energy on BSE, the stock is placed under Trading Restriction - On account of IBC/ Recommencement post IBC. Accordingly, the stock is under IRP: Stage 1.
As per Zerodha's website, IRP, or Corporate Insolvency Resolution Process, is a procedure established under the Insolvency and Bankruptcy Code, 2016 (WEB). The IBC serves as the bankruptcy legislation in India.
Further, Zerodha explained that if a corporate debtor defaults in repayment of the creditors' dues, the financial creditor/s has the power to start the insolvency resolution process. In order to initiate the resolution process, an application has to be made to the National Company Law Tribunal (NCLT). The claims of the creditors (i.e., company assets) shall be frozen for six months upon admission of application by NCLT. During this time, the NCLT shall listen to the options to revive and decide the future course of action, either debt resolution, corporate restructuring or liquidation. This process happens in stages.
Coming to the meaning of IRP: Stage 1, these stocks can only be sold on the 1st trading day of the week, i.e., Monday (Tuesday, if Monday is a trading holiday). These stocks are visible in Kite holdings only on the 1st trading day of the week. However, they will be visible on the Console on all trading days, as per Zerodha.
Ujaas Energy Bonus Issue:
The company is going to reward investors with a bonus issue of 1:4. Meaning, the company will issue 1 free share on the existing four equity shares.
When is the record date? As per the regulatory filing, the board has considered and approved the allotment of bonus shares and has also approved Friday 20th September, 2024 as record date for allotment of bonus shares.
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.
About Ujaas Energy:
Ujaas Energy Limited is the first company to generate & sell Solar REC in the country from its solar power plant of 2 MW commissioned in March 2012 at Rajgarh (Madhya Pradesh). The company during its initial years was involved in the manufacturing of transformers and panel meters for energy control.
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