1:10 Stock Split, 4:1 Bonus Shares, Upper Circuits: Rs 16 Penny Stock Turns Rs 1 Lakh To Rs 5.5 Lakh In 5 Days

The charm of stock splits and bonus issues works like a sweet treat for investors. And that has been the case with penny stock in the media segment, Maagh Advertising and Marketing Services. This penny stock has been in green since the time it turned ex-bonus and ex-split. If any investor held over Rs 1 lakh in Maagh Advertising before ex-bonus and ex-split, their investment has risen by over 400% to nearly Rs 5.5 lakh in a span of five days. The stock has touched back-to-back upper circuits and 52-week highs.

Maagh Advertising and Marketing Services:

After turning ex-bonus and ex-split, Maagh Advertising shares have touched back-to-back upper circuits and new 52-week highs. Maagh is on a winning streak for five consecutive days, giving over 24% return since February 5th.

That means, the stock traded higher throughout the last week. On February 9, Maagh's share price ended at 5% upper circuit to Rs 16.40 apiece with a market cap of Rs 369.02 crore. This is also its new 52-week high.

Before ex-bonus and ex-split, the stock price was at Rs 165.30 apiece.

Maagh Advertising shares turned ex-bonus and ex-split on February 5.

Maagh Advertising and Marketing Services Bonus Issue:

On February 6th, Maagh said that the board also approved the allotment of 4,50,02,500 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 a post-sub division.

The ratio of bonus issues is 4:1 which means that Maagh allotted 4 bonus shares on the existing 1 equity share.

Maagh Advertising and Marketing Services Stock Split:

Also, last week, they 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

Here's how Maagh multiplied investors wealth in a span of 5 days:

Let's assume, before February 5, an investor held 650 shares of Maagh Advertising. The pre-bonus and pre-split share price was at Rs 165.30, so 650 shares will be valued up to Rs 1,07,445 (650X Rs 165.30).

Now, 650 shares will get bonuses of a whopping 2,660 shares (650X4/1). Accordingly, investors will have 3,310 equity shares including bonus shares.

Further, these 3,310 equity shares if split into 1:10 ratio will come around a massive 33,100 equity shares. (3,310X10).

These 33,100 shares are now at Rs 5,42,840 on the current market price of Rs 16.10 apiece.

Hence, in a span of five days, a portfolio of Rs 1.07 lakh in Maagh Advertising, has risen to over Rs 5.42 lakh in 5 days. The return on capital is Rs 4.35 lakh or 405.22%.

Maagh Advertising and Marketing Services is a data-driven advertising solutions company that helps businesses achieve their marketing goals. The 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's bonus issue and sub-division 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.