Bonus Issue Announcement This Week: Smallcap IT Stock Below Rs 500 To Reward Investors; 267% Surge In 12 Mnths

Smallcap computers, software and consulting firm, Mindteck (India) is set to announce bonus share rewards to investors later in the current week. The company's board is set to meet on August 8 to take a call on the bonus issue. Accordingly, Mindteck shares will be in focus.

Mindteck Share Price:

Currently, Mindteck shares are at Rs 439.20 apiece, with a market cap of Rs 1,118.13 crore. The stock's last week's gains were nearly 3% on BSE.

YTD, the stock zoomed by over 84%. In a year, the stock made a huge rally of 266.54% becoming a multi-bagger.

In the long term, Mindteck shares advanced by a whopping 1,128.63%.

The stock's 52-week high and low is at Rs 460.25 apiece and Rs 118.40 apiece respectively. The stock's PE ratio is at 61.14x, and the return on equity is stable at 11.22%.

Mindteck Bonus Issue:

As per the regulatory filing, Mindteck announced that its board of directors are meeting on August 8 to consider the proposal for issuance of Bonus Shares to the Equity Shareholders of the Company. The record date, ex-bonus date, and allotment date will be announced accordingly.

In simple words, 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. However, the share price is adjusted to the bonus issue ratio.

Some of the very popular bonus shares ratios are -- 4:1, 1:2, 3:5, 1:10, and 5:1. However, bonus issues vary from company to company.

About Mindteck:

For FY24, the company's consolidated revenue stood at Rs. 97.90 crore as against Rs. 95.75 crore for the previous quarter ended December 31, 2023, and Rs. 88.74 crore for the corresponding quarter ended March 31, 2023. Consolidated net profit for the quarter stood at Rs. 6.48 crore as against a profit of Rs. 7.19 crore for the previous quarter ended December 31, 2023, and Rs. 5.41 crore for the corresponding quarter ended March 31, 2023.

Mindteck is a global engineering and technology solutions company devoted to delivering knowledge that matters to help clients compete, innovate and propel forward along the digital continuum. The company's legacy expertise in embedded systems, enterprise applications and testing is a powerful complement to competencies in digital engineering, including cloud, IoT and cybersecurity, as well as data engineering services such as AI/ML and analytics.

Since its establishment in 1991, Mindteck's clientele has included top-tier Fortune 1000 companies, start-ups, leading universities, and government entities. The company is publicly traded on the Bombay Stock Exchange (BSE 517344) and the National Stock Exchange (NSE Mindteck).