2 Bonus Shares On 1 Existing Share After 1:10 Split: Trading Below Rs 13, Penny Stock Turned Ex-Bonus

Edible oil marker, MK Proteins has turned ex-bonus on March 15 in the ratio of 2:1. It means that the company will issue 2 bonus shares on existing 1 equity share. The bonus allotment comes after the company turned ex-split for a 1:10 ratio last year. The allotment of bonus shares will be announced soon.

On BSE, MK Proteins' share price locked at 5% upper circuit with a market cap of Rs 487.23 crore. The stock price is currently at Rs 12.98 apiece, while its 52-week high and low are at Rs 33.30 apiece and Rs 11.68 apiece respectively.

The company turned ex-bonus on March 15, which is also the record date to ascertain the eligibility of shareholders entitlement of Bonus Equity Shares of the Company in the ratio of 2:1 i.e. 2 (Two) Equity Shares for every 1 (One) Equity Shares having a face value of Re1/-.

The bonus issue is in the ratio of 2:1. MK Proteins' share price has seen a significant correction since last year. YTD, the stock has fallen by 37%, and in a year, the downside is nearly 46%.

Before bonus shares allotment, the company turned ex-split in the ratio of 1:10 in November last year. The face value was trimmed from Rs 10 to Rs 2 each after the ex-split.

M K Proteins is a manufacturing and trading organization having its production/refining plant of Edible Oils. The company is focused on the production of the highest quality of edible oil. Its refinery is completely mechanised and today it produces rice bran oil, sunflower oil etc with protein content, with controlled fibre free from oil residue, ash and sand & silica. This is possible only through sustained levels of cleaning, storage and monitoring arrangements.

What Are Bonus Shares And Stock Splits?

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.

While, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

Disclaimer: The write-up highlights about the latest development in stock split, 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.