2% Upper Circuit: NBFC Stock Okays 1:10 Stock Split & 7:1 Bonus Shares After 588% Gain In 1 Year

Sunshine Capital Ltd. is a small-cap NBFC with an Rs. 181.88 Cr. market capitalization. Sunshine Capital's shares closed at Rs 139.68, the 2% upper circuit limit, on the BSE on Friday. One of Dalal Street's multibagger stocks is the NBFC stock, which surged from Rs 20.30 to the current market price, recording a multibagger return of 588.08% in just a year. What's thrilling about the stock, though, and what will attract investors' attention is that Sunshine Capital's Board of Directors has approved a 1:10 stock split and a 7:1 bonus shares.

Sunshine Capital Stock Split

The Board of Directors in their meeting held on 12th January, 2024 which commenced at 05:00 P.M. and concluded at 7:10 P.M. inter-alia considered and approved "stock split (sub-division of equity shares) of Company's 1 (One) equity share of face value of Rs.10/- each into 10 (Ten) equity shares of face value of Re. 1/-each, subject to the approval of shareholders and other approvals as may be required. In this respect the record date shall be decided by the board and will be intimated to exchange," said the company in a regulatory filing.

The rationale behind the split/consolidation is to facilitate a larger shareholder base and aid liquidity capital, according to Sunshine Capital. The expected time of the completion of the said corporate action is within 3 months from the approval of the shareholders.

Sunshine Capital Bonus Shares

The Board of Directors of the company considered and approved the "Issuance of Bonus Issue of Equity Shares in the proportion of 7 (seven) Equity Share of Re. 1/- each for every 1 (One) Equity Share of Re. 1/- each held by the Shareholders of the Company as on the record date, subject to the approval of shareholders i.e. in compliance with the applicable laws. In this respect the record date shall be decided by the board and will be intimated to exchange," said Sunshine Capital in a regulatory filing on Friday.

Rs. 91,14,63,000/- divided into 91,14,63,000/- equity shares of Re. 1/- each is the total number of securities proposed to be issued or the total amount for which the securities will be issued as a part of the bonus shares.

Bonus shares will be issued out of free reserves of the Company available as of 30th September,2023 and as of 30th September, 2023, Rs. 91,44,87,058/- of free reserves is available as per Statutory Auditor's certificate issued by M/s Tiwari & Mishra, Chartered Accountants, according to Sunshine Capital.

Within 3 months from the date of the meeting of its board of directors wherein the decision to announce the bonus issue was taken subject to shareholders' approval is the estimated date by which such bonus shares would be credited / dispatched.