Together with quarterly results, the companies are also factoring the bonus share issuance as well as stock split announcement. Likewise, one heavy engineering firm and one multibagger stock i.e. a lesser known scrip has made stock split announcement. Here we go on about the details on them:
The small cap company into manufacturing of glass-lined equipment, storage vessels and alloy steel equipment announced bonus share issuance. The company in the filing said, considered and recommended issue of bonus eguity shares in the ratio of 2(Two) new eguity shares for every 1 existing eguity share held, subject to approval by the
shareholders and any other regulatory approvals. The bonus shares will be credited to those shareholders who are holding the eguity shares as on record date i.e. July 12, 2022. The credit/ dispatch of said bonus eguity shares, as the case may be, shall be completed within 60 days from the date of approval of the Board i.e. latest by July 23, 2022.
This is a trading and distribution concern. The company in the filing mentioned that "Proposal of Sub- Division (Split) of equity shares of the company from the existing Face value of Rs. 10/- per equity shares to Face value of Rs, 2/- per equity share as per Section 61(1)(d) of the Companies Act, 2013 and other applicable rules & regulations subject to approval of members of the company".So, the split shall be in the ratio of 1:5 and the rationale given for the split is to improve the Liquidity of equity shares with higher floating stocks and to make the equity Split shares more affordable for investors. This is a multibagger scrip with 1-year return at a whopping over 472%.
The bonus and stock split for these stocks are just informed by, nevertheless any call on investment in these stocks need not be taken considering these intended corporate actions.