Penny Stock Below Rs 20 Hit 5% Upper Circuit As Board Declares 1:1 Bonus Shares

Small-cap firm Danube Industries Ltd operates in the commercial services industry. It is a major IT hardware engineering firm in India that operates in businesses selling laptops, video games, and home entertainment items. The company has recommended bonus shares in 1:1 shares post which the stock has hit a 5% upper circuit during the opening session of Wednesday.

"Further, the Board of Directors has recommended to capitalize a sum not exceeding Rs. 6,00,00,000 (Rupees Six Crores only) out of the sum standing to the credit of 'Securities Premium Account' of the Company, as per the audited financial statements of the Company for the financial year ended March 31, 2023 and that the said amount be transferred to the Share Capital Account and be applied for issue and allotment of equity shares not exceeding 3,00,00,000 (Three Crores) equity shares of Rs. 2/- (Two) each as fully paid up bonus shares, to the eligible members of the Company holding equity shares of Rs. 2/- (Two) each, whose names appear in the Register of Members/Beneficial Owners' position of the Company on such date ("Record Date") fixed by the Company, in the proportion of 1:1 i.e., One (1) new equity share of Rs.2/- (Two) each for every One (One) existing equity share of Rs.2/- (Two) each held as on the Record Date and that the new bonus shares so issued and allotted shall be treated for all purposes as an increase in the nominal amount of the equity share capital of the Company held by each of such member(s)," said Danube Industries in a stock exchange filing.

During Q1FY24, the company recorded a net revenue of Rs 16.14 Cr compared to Rs 30.44 Cr in Q4FY23. Its net profit stood at Rs 0.38 Cr during June 2023 quarter compared to Rs 0.19 Cr in March 2023 quarter. Danube Industries said its EPS was Rs 0.63 in the quarter under review compared to Rs 0.06 in the previous quarter. In FY23, the company said its total revenue was Rs 69.10 Cr, net profit was Rs 0.76 Cr while EPS stood at Rs 0.25.

The shares of Danube Industries opened at an upper circuit level of Rs 15.48 on Wednesday with an upside gap of 5% over the previous close of Rs 14.75. The stock made a 52-week-high of Rs 72.90 on (23/08/2022) and a 52-week-low of Rs 12.05 on (28/03/2023). During Q1FY24, the company reported promoter shareholding of 38.89% and public stake of 61.11%.