2:1 Bonus Shares: Penny Stock Hit Upper Circuit For 14th Straight Session; Do You Own?

BSE-listed penny stock Standard Capital Market is one of the multibagger stocks that Dalal Street has witnessed. On Wednesday, the shares of Standard Capital Market opened on the BSE at a 2% upper circuit limit at Rs 2.83 apiece level. On the chart screen, it can be recorded that the stock has been hitting its upper circuit limit from the last 14 sessions surging from Rs 2.30 level to the current market price logging a gain of 23% in this period.

The stock is in focus for the price action after it informed stock exchanges on Tuesday by reporting that "Pursuant to Regulation 30 of the Securities Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015, we hereby inform your good ofϐice that the Board of Director of the Company at their meeting held today i.e., January 02, 2024, has allotted 98,00,02,000 fully paid-up Bonus Equity Shares of Re. 1/- each in the ratio 2:1 i.e., Two (2) Equity Share of Re. 1/- each for every One (1) Equity Share of Re. 1/- each held by the shareholders of the Company as on the record date i.e. December 29, 2023."

"The Bonus Equity Shares allotted as above shall rank pari-passu in all respect and carry the same rights as the existing equity shares of the company including dividends and other corporate benefits, if any, declared by the Company after the said allotment," the company further stated.

Standard Capital Market's pre-bonus issue paid-up share capital comprised 49,00,01,000 shares amounting to Rs 49,00,01,000 at a face value of Rs 1 whereas its post-bonus issue paid-up share capital comprises 1,47,00,03,000 shares

At its meeting on November 24, 2023, the company's Board of Directors authorised the 2:1 bonus issue and the 1:10 stock split. The company established December 29, 2023, as the record date for the sub-division and bonus issue of equity shares of its company one month later, on December 22.

The non-banking financial operations are the business of Standard Capital Markets Ltd. In addition to dealing in stocks, bonds, and stock market investment units, the organisation provides a range of financial services to individuals and MSMEs, including secured and unsecured loans. The firm reported its standalone total income for the quarter that ended on September 30, 2023, at Rs 5.65 crore, which is a rise of 2.47% over the previous quarter. During the quarter, the net profit after tax (PAT) of the firm was recorded at Rs 2.31 crore.