1:10 Stock Split Done, Now, Penny Stock Below Rs 5 To Offer 1 Bonus On 5 Existing Equities; How To Be Eligible

The textile company, Akshar Spintex is a penny stock and it witnessed a bullish trend for the first time in eight trading sessions. On Monday, this penny stock reversed its trend of seven consecutive days of selloff and touched a 5% upper circuit. The bulls wagon comes as the record date of the company's bonus issue in the ratio of 1:5 is nearing.

Akshar Spintex Share Price:

On February 12, Akshar Spintex shares recorded a 5% upper circuit to Rs 4.46 apiece in the opening bell. At the time of writing, the stock traded at Rs 4.43 apiece, up by 4.24% on BSE with a market cap of Rs 111 crore.

Akshar's share price was in red from February 2nd to 9th, falling by a little over 17%.

But this week, it will be keenly watched how Akshar's share performs with the bonus issue in focus.

Akshar Spintex Bonus Issue:

Last week, in its regulatory filing, Akshar Spintex said, the company cancelled the record date earlier i.e.08th February 2024. The revised record date for the bonus issue is Thursday. 15th February, 2024.

Hence, now those shareholders will be eligible for bonus issue, who hold shares of Askhar Spintex in their demat accounts by the end of February 15. This also gives more room for investors to trade in Akshar Spintex.

Akshar stated that the reason for the change record is the adjournment of EGM. The Extra Ordinary General Meeting was held on 31st January 2024. Due to a lack of quorum, the EGM was adjourned to 07th February 2024, so for compliance with the Regulation the Record date was revised or the record date is 15th February 2024 for bonus issue.

The company will carry a bonus issue in the ratio of 1:5 -- meaning --- 1 Bonus Equity Shares of Re. 1/- each for every 5 existing Equity Share of Re. 1/- each.

In the bonus issue, the face value of a listed stock remains the same.

Akshar Spintex Stock Split:

In 2023, Askhar's shares were sub-divided by 1:10. The company had turned ex-split on July 31, 2023.

The 1:10 stock split led to 1 existing equity share of Akshar Spintex with a face value of Rs 10, sub-divided into 10 smaller equity shares with a face value of Re 1 each.

Akshar Spintex Limited takes immense pride in perceiving its role as the comprehensive architect of every single yarn that produces. It is this demand for perfection that has spurred the growth of an organization and its corporate philosophy.

The company has a total of 24,480 spindles with an annual production of 7500 MT in cotton yarn its count range is 16's to 44's Ne contamination Controlled auto coned carded, semi and combed mill with all the latest German and Japanese technology machineries. When it comes to quality yarns, it is said that the company is the industry leader in satisfying customers.

Because of the increased demand of value added quality yarns the company has decided to increase the capacity of value-added yarn, the company has decided to make Carded, Combed, Slub yarn, Core yarn, TFO(Doubling) yarn, Eli Twist yarn, Fancy yarn, Melange yarn, Blended yarn, BCI and Organic Certified yarn.