Big Update On Allotment of 2:1 Bonus Shares Announced: Bet On The Debt-Free Stock?

As of Thursday's BSE closing session, DRC Systems India Ltd., a small-cap company in the IT industry, has a market worth of Rs 295.40 Cr. One of Dalal Street's debt-free multibagger stocks is DRC Systems India, which has recently produced an enormous return of 114.08% over the past year. Nevertheless, following the company's significant announcement regarding the allotment of 2:1 bonus shares, the stock closed on Thursday at a 2% lower circuit limit of Rs 22.30 per share.

DRC Systems India Bonus Shares News

"Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ("Listing Regulations"), we wish to inform that the Securities Allotment Committee of the Company at its meeting held today i.e. on Thursday, February 29, 2024 has approved the allotment of 8,83,10,620 (Eight Crore Eighty Three Lakhs Ten Thousand Six Hundred and Twenty) Equity Shares of Re. 1/- each by way of bonus issue to such members whose names appeared in the Register of Members as on February 27, 2024, being the Record Date fixed for the said purpose, in proportion of 2 (Two) new fully paid-up Equity Shares of Re. 1/- each for every 1(One) existing fully paid-up Equity Share of Re. 1/- each held by them, (i.e. in the ratio of 2:1). The new Bonus Equity shares allotted shall rank pari-passu in all respects with the existing Equity Shares of the Company," said DRC Systems India in a stock exchange filing on Thursday.

The pre-bonus issue paid-up equity share capital was 4,41,55,310 shares amounting to Rs 4,41,55,310 at a face value of Rs 1 each while the post-bonus issue paid-up equity share capital of the company stands at 13,24,65,930 shares amounting to Rs 13,24,65,930 at a face value of Rs 1 each.

DRC Systems India Financials

The company reported consolidated net sales of Rs 13.56 crore in the December 2023 quarter up 56.96% from Rs. 8.64 crore in the December 2022 quarter. Its consolidated net profit stood at Rs. 5.10 crore in Q3FY24 up 29.81% from Rs. 3.93 crore in Q3FY23. The company's EBITDA reached Rs. 5.75 crore in the reporting quarter up 20.29% from Rs. 4.78 crore in the same quarter of the previous fiscal year.

DRC Systems India Share Price Target

DRC Systems is bearish on the daily charts with strong resistance at 23.35. A daily close below support of 21 could lead to a target of 18.5 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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