7:1 Bonus Issue First Ever, Record Date On Sept 10; At Rs 90, Textile Penny Stock To Split, Up 128% In 1-Year

Textile products maker, Indo Cotspin has touched back-to-back upper circuits ahead of its bonus issue which is for the first time ever by the company. The stock gained by 4% in the last two trading session, after selloffs for four-consecutive days. The penny stock has very high PE ratio of 299.23x, while its return on equity is low at 1.85%. Nonetheless, Indo Cotspin surged by 78% YTD, and in a year, the stock has become a multibagger with gains of 127.83% on BSE.

Indo Cotspin Share Price:

Last week, on Friday, after market hours, the penny stock ended at Rs 90.47 apiece, which is the company's 2% upper circuit. The stock is now a little over Rs 10 away from touching its 52-week high of Rs 100.24 apiece. While the stock's 52-week low is at Rs 34.25 apiece.

The stock will be in focus this week ahead of its bonus issue. It will be keenly watched if the stock would clock Rs 100 mark.

As per Trendlyne data, the company's Debt to Equity Ratio of 0.01 is less than 1 and healthy, which implies that its assets are financed mainly through equity. Also, Mutual Fund Holding remained the same in the last quarter at 0%. Further, Interest Coverage Ratio is 118.64, higher than 1.5, meaning that it is able to meet its interest payments comfortably with its earnings (EBIT). Promoter Pledges are zero.

Indo Cotspin Bonus Issue:

Indo Cotspin has fixed Tuesday, 10th, September, 2024 as the "record date" for the purpose of determining the eligibility of shareholders for issuance of Bonus Shares in the ratio of 7:10.

The ratio 7:10 bonus means that 7 new equity share of Rs. 10 each for every 10 equity share of Rs.10 each.

Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. 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.

About Indo Cotspin:

Indo Cotspin is an Exporter , Manufacturer , Importer , Trader and supplier Supplier. The Primary Competitive Advantages of the company was Qualitative Products, Minimal Price, Quick Delivery. Company was established in the year 1955 which Exports markets world wide on Automatic Production with 4 Engineers.