Penny Stock Below Rs 20: Board Postpones Proposal of Issuance of 1:1 Bonus Shares

With a market valuation of Rs 345.47 Cr, Lorenzini Apparels Limited is a small-cap company in the garment and apparel industry. The penny stock under Rs 20 is probably going to be in the spotlight going forward after gaining 28% year-to-date in 2024. This is because the Board of Directors discussed the proposal of issuing bonus shares during their meeting on Wednesday, December 25, 2024.

The Board of Directors of the Company at their meeting held on Wednesday, December 25, 2024 inter-alia, considered the "Proposal of issuance of Bonus equity shares to the shareholders of the Company. The Board of Directors has decided to postpone/defer the agenda items related to the Bonus Issue and the increase in Authorized Share Capital. It was suggested by the Board members that the proposal of capitalization of reserves for issue of Bonus shares shall be reconsidered in due course," said Lorenzini Apparels in a stock exchange filing on Wednesday.

According to Lorenzini Apparels Limited, the Board also approved the nomination of Mrs. Sapna Khanna (DIN: 10876163) as an Independent Director of the company and took into account an increase in the authorised share capital.

Lorenzini Apparels previously notified stock exchanges on December 20, 2024, that the company's board of directors will meet on Wednesday, December 25, 2024, to discuss and recommend to shareholders that bonus shares be issued in a 1:1 ratio to the company's equity shareholders by capitalisation of reserves.

The firm had previously notified stock markets on December 07, 2024, that Mr. Mohan Chauhan (DIN: 08627458), an Independent Director of the company, had resigned from his position on the company's board. officially, his term terminated on December 6, 2024.

In accordance with the conversion of warrants issued on a preferential basis by the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited, Lorenzini Apparels was granted trading approval for 3820827 equity shares earlier on December 07, 2024. The application for the listing of additional 3820827 equity shares of Re. 1/-, each issued in accordance with the company's conversion of compulsory convertible warrants on a preferential basis, was received.

Since its founding in 2007, Lorenzini Apparels Ltd. has been actively involved in the design, production, and marketing of a wide variety of ready-made clothing for both men and women under the "Monteil" brand. Financially speaking, the company's September 2024 quarter net sales of Rs 13.05 crore represented a 27.14% drop from the September 2023 quarter's net sales of Rs 17.91 crore. In Q2FY25, its net profit was Rs. 12.17 crore, jumping 552.15% from Q2FY24's Rs. 1.87 crore. Its EBITDA surged 316.42% from Rs. 4.02 crore in the September 2023 quarter to Rs. 16.74 crore in the September 2024 quarter.