2:1/1:1 Bonus Shares, 1:10 Stock Split: Ex-Date In 2 Days; Which Stock To Buy?

Two firms that have announced corporate actions such as stock splits and bonus shares for their eligible shareholders are SG Mart Ltd and MAS Financial Services Ltd. SG Mart Ltd. has proposed a 1:10 stock split along with 1:1 bonus shares, whilst MAS Financial Services has recommended a 2:1 bonus share ratio. For the aforementioned actions, both firms have set Thursday, February 22, 2024, as the record date. This indicates that the stocks will hit ex-date for each of their respective corporate actions in two days.

MAS Financial Services Bonus Shares

"The Board of Directors have recommended the issue of Bonus Shares in the proportion of 2:1 i.e. 2 (Two) new fully paid-up bonus equity share of Rs. 10/- (Rupees Ten only) each for every 1 (One) existing fully paid-up equity share of Rs. 10/- (Rupees Ten only) each held by the Members of the Company as on the Record Date, subject to approval of the Members of the Company. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has fixed Record Date for reckoning eligible Members of the Company entitled to receive bonus shares, as Thursday, February 22, 2024," said MAS Financial Services in a regulatory filing.

"The Bonus Shares once allotted shall rank pari-passu in all respects and carry the same rights of the existing Equity Shares and shall be entitled to participate in full in any dividend and other corporate action(s), recommended and declared after the issue and allotment of such Bonus Shares," MAS Financial Services said in a stock exchange filing.

MAS Financial Services Share Price Target

MAS Financial Services looks bearish on the Daily charts with strong resistance at 1060. A daily close below support of 969 could lead to a target of 874 in the near term, said AR Ramachandran from Tips2trades.

SG Mart

"In terms of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that pursuant to the shareholders' approval obtained through postal Ballot completed on February 9, 2024, the Board of Directors at its meeting held on February 10, 2024 has fixed, Thursday, February 22, 2024 as the "Record Date" for the purpose of;

a) Sub-division of face value of Equity Shares (all the Authorized, Issued, Subscribed and Paid-up Equity Shares of nominal value of Rs. 10/- (Rupees Ten Only) each shall stand sub-divided into 10 (Ten) Equity Shares of nominal value of Re. 1/- (One Rupee) each fully paid-up and;

b) ascertaining the eligibility of securityholders entitled for issuance of Bonus Equity Shares of the Company in the ratio of 1:1 i.e. 1 (One) Equity Shares for every 1 (One) Equity Shares having a face value of Re. 1/- (considering the post sub-division/split of face value of equity shares)," said SG Mart in a regulatory filing.

SG Mart Share Price Target

SG Mart is bullish but also overbought on the Daily charts with next resistance at 12350. Investors should book profits at current levels as a Daily close below support of 11412 could lead to a target of 10400 in the near term, said AR Ramachandran from Tips2trades.

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.