1:10 Stock Split, 1:4 Bonus Shares: Once Rs 165 Penny Stock Is Now Cheaper Than Rs 15, Gives 1,235% Returns

Maagh Advertising and Marketing Services, a penny stock in the media sector, traded till Rs 165 apiece last week. But from February 5th onward, the stock is now trading cheaper than Rs 15 per share. The reason is the company's stock split in the ratio of 1:10. The company also paid bonus shares in the ratio of 1:4. The company's board have approved the allotment of equity shares for adjusting to stock split and bonus issue.

Maagh Advertising and Marketing Services Stock Split:

On February 6th, the company's board took on record the allotment of Equity Shares in the ratio of 10 (Ten) Equity Shares of Rs. 1/- (Rupee One only) each for every 1 (One) Equity Share of Rs. 10/- (Rupees Ten only) each held by the members as on record date i.e. 05th February, 2024 pursuant to Sub-division.

Listed companies usually declare a stock split of already owned shares into much smaller shares. This is done to improve liquidity by breaking the shares into smaller sizes. The face value of the shares reduces in proportion to the split ratio, however, there is no impact on the company's share capital and reserves. Although the price value of a stock reduces in a stock split, the number of shares held rises in the investors' portfolio of that specific stock.

Maagh Advertising and Marketing Services Bonus Issue:

Further, Maagh said that the board also approved the allotment of 4,50,02,500 (Four Crores Fifty Lacs Two thousand Five Hundred) Equity Shares of Rs. 1/- each as Bonus Shares in the ratio of 1 (One) Equity Shares for every 4 (Four) Equity Shares held to the eligible Shareholders as on record date ie. 05th February, 2024. The Bonus Shares Issued is post-sub division.

It added, pursuant to the Allotment of Bonus Shares, The Paid up share of the company is Rs. 22,50,12,500 divided into 22,50,12,500 Equity Shares of Rs. 1/- each.

Just like stock split, bonus shares are also corporate actions carried by listed companies. Bonuses are issued in a certain proportion only to the existing shareholders free of cost. 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.

Maagh Advertising and Marketing Services:

On February 7th, the stock price stood at Rs 14.95 apiece up by 3.10% on BSE with market cap of Rs 336.39 crore. Also, during the trading session, the stock touched its new 52-week high of Rs 15.20 apiece on the exchange.

Due to its stock split, the stock has a 52-week low of Rs 1.12 apiece. Currently, the stock has gained by a humungous 1,234.82% from its lows.

Maagh Advertising and Marketing Services is a data-driven advertising solutions company that helps businesses achieve their marketing goals.

he company's Media Planning & Advertising Company provides ROI-driven results by giving companies the perfect media mix to overcome their marketing challenges. As part of its efforts to create a unique brand experience in the advertising space, the company offers a dedicated account manager, industry insight, etc. Using data-driven decision-making & a distinctive approach helps us deliver flawless campaigns.

Disclaimer: The stock just highlights the stock split and bonus issues, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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