1:5 Bonus Issue: Trading Below Rs 4, Penny Stock Hits 5% Upper Circut On Turning Ex-Bonus; What's NEXT?

Textile stock, Akshar Spintex froze at its 5% upper circuit as it turned ex-bonus on Thursday. The stock price has seen healty momentum in recent days leading up to ex-bonus and record date. On February 15, there were several buyers but no sellers. The company also announced that it will soon consider allotment of bonus shares in the up coming board meeting.

The company has announced bonus issue in the ratio of 1:4 --- meaning --- (One) Equity Shares of Re. 1/- each for every 5 (Five) existing Equity Share of Re. 1/- each held as on the above-mentioned record date.

The record date to determine eligible shareholders for bonus issue is fixed at February 15. Hence, those investors who will hold Akshar's shares by end of today, will be eligible to receive bonus shares.

In general terms, bonus shares are issued in a certain proportion only to the existing shareholders free of cost. 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.

Further, this week, Akshar announced that in a board meeting of the company scheduled on February 17, the alloment of bonus shares will be considered for approval.

On the ex-bonus day, Akshar Spintex's shares hit 5% upper circuit to Rs 3.80 apiece with market cap of Rs 114 crore, The stock's 52-week high and low is at Rs 8.40 apiece and Rs 3.55 apiece respectively.

Akshar Spintex Limited takes immense pride in perceiving its role as the comprehensive architect of every single yarn that produces. It is this demand for perfection that has spurred the growth of an organization and its corporate philosophy.

The company has a total of 24,480 spindles with an annual production of 7500 MT in cotton yarn its count range is 16's to 44's Ne contamination Controlled auto coned carded, semi and combed mill with all the latest German and Japanese technology machineries. When it comes to quality yarns, it is said that the company is the industry leader in satisfying customers.

Because of the increased demand of value added quality yarns the company has decided to increase the capacity of value-added yarn, the company has decided to make Carded, Combed, Slub yarn, Core yarn, TFO(Doubling) yarn, Eli Twist yarn, Fancy yarn, Melange yarn, Blended yarn, BCI and Organic Certified yarn.

How bonus shares will multiply your holding in Akshar Spintex? For instance, if you're holding 150 shares of Akshar by February 15, then you will receive up to 30 bonus shares, which will total your holding to 180 shares.

Disclaimer: The stock highlights bonus shares, 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.