Stock Split, Bonus Issue Announcement On Aug 8; Below Rs 200, Minerals Penny Stock Hits New 52-Week High

Minerals trader, Starlineps Enterprises has touched a new 52-week high ahead of its board meeting where they will consider double rewards for investors. Starlineps is planning to deliver both stock splits and bonus issue to its investors. Starlineps is a penny stock and trades below Rs 200.

After hitting a new 52-week high of Rs 181 apiece during the trading session of August 2, Starlineps share price ended at Rs 166.20 apiece, up by 2.6% on BSE. The penny stock's market cap is at Rs 718.48 crore.

While the stock has more than doubled from its 52-week low of Rs 83.30 apiece.

As per the regulatory filing, a Meeting of the Board of Directors of the Company is
scheduled to be held on Thursday, the 08th August, 2024 at 03.30 p.m, to consider following business:

1. Proposal for sub-division/split of Equity Shares of the Company having a face value of Rs. 5/- each in such manner as the Board may determine. This is expected to increase the liquidity of the shares and make them more affordable for small investors.

2. Proposal for issuance of Bonus shares to the Equity shareholders of the Company. Issuing bonus shares will reward existing shareholders, increase the share capital base, and enhance the stock's liquidity.

3. Proposal to increase in the Authorised Share Capital of the Company.

Right after stock split and bonus issue announcement, the company is further scheduled to announce its financial results for June 2024 quarter on August 9.

What Is A Stock Split?

Share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

There are a few very popular stocks split. They are 1:10, 1:5, 1:2, and 1:1. But it is up to the listed companies to decide their stock splits ratio.

What Is Bonus Issue?

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.

Some of the very popular bonus shares ratios are -- 4:1, 1:2, 3:5, 1:10, and 5:1. Just like stock splits, bonus issue ratio varies from company to company.