This Small Cap Company Approves 1:10 Bonus Issue

The earnings season is on and companies also decide on different course of action in their board meets for the purpose. Likewise, the small cap company in its board meet on February 18 has approved bonus issue in the ratio of 1:10 i.e. 1 (One) fully paid up equity share for every 10 (Ten) fully paid up equity share held,subject to the shareholders' approval through Postal Ballot.

How will bonus share issuance impact share price?

In this case for every 10 shares, 1 more share will be issued to the company, so the 11th share will be free for the investor. So, accordingly, the price of the share shall change such that the total value of investment for the investor after the bonus share issuance continues to be the same.

Company's Q3Fy22 performance

In the December ended quarter, the company posted net loss of Rs. 0.03 crore as against Rs. 0.27 crore profit in the previous quarter. Profit however declined YoY to Rs. 0.03 crore as against Rs. 0.05 crore. The stock in the last one year has given negative performance.

This is another penny scrip trading at a price of Rs. 1.29 per share on the BSE.

About the company

The company is in the business of wholesale and retail trade all kinds of pharmaceuticals. It is also engaged in the business of chemists, druggists, buyers, sellers, agents, distributors and stockiest of all kinds of pharmaceuticals and allied products.