1:3 Bonus Issue: 265 Shares For Rs 10,000 Of This Penny Stock? Here's How Much Returns, Bonuses You Earn

Logistics solution provider, Shreeji Translogistics is a penny stock trading below Rs 40. Last week, this penny stock turned ex-bonus for its bonus shares in the ratio of 1:3. On February 9th, the company also received approval for the allotment of shares. Investors' portfolio of Rs 10,000 in Shreeji shares has earned a return of over 32.5% after the ex-bonus date.

Shreeji shares have corrected after turning ex-bonus, but because of the charm that comes along with bonus shares, investors' portfolios have still risen.

As per the regulatory filing, the board of directors in a meeting held on February 9 approved the allotment of 1,74,70,875 Equity Shares of Rs. 2/- each as fully paid bonus equity shares, to the members whose names appear in the Register of Members as on 8th February 2024 i.e. Record Date fixed for this purpose, in the proportion of 1:3 i.e. 1 (One) fully paid Bonus equity share of Rs. 2/- each for every 3 (Three) fully paid equity shares of Rs. 2/- each held.

The bonus issue of 1:3 meant that the company would issue one bonus share on the existing three equity shares.

Consequently, it said, the paid-up equity share capital of the Company has increased from Rs.10,48,25,250/- consisting of 5,24,12,625 equity shares of Rs. 2/- each to Rs. 13,97,67,000/- consisting of 6,98,83,500 equity shares of Rs. 2/- each.

Let's take an example to understand how your portfolio has risen:

Before the ex-bonus date (February 8), the share price of Shreeji stood at Rs 37.76 apiece on February 7th. So let's assume, you invested Rs 10,000 in this penny stock, and you receive about 264.83 shares (10,000/37.76)of the company. Let's round it up to 265 shares.

Now after ex-bonus, 265 shares will become 353.1 equity shares (rounding it up to 354 shares). The calculation for bonus shares upon existing shares is -- 265X1/3 which will come to around 88.27 bonus shares. Adding these bonus shares, the number of shares in your portfolio rises to 353.1 equity shares.

At Rs 37.76, your investment of 265 shares is valued at Rs 10,006.4. But after adding bonus shares, at Rs 37.51 apiece, the 353 equity shares portfolio will value up to Rs 13,241.03. This is an increase of 32.32% in your portfolio.

Generally, bonus shares 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.

Shree Translogistics Share Price:

Last week, on Friday, Shreeji's share price ended at Rs 37.51 apiece, down by 5% on BSE with a market cap of Rs 262.13 crore. In 5 years, Shreeji's shares have given over 470% returns. The stock price was below Rs 7 in mid-February of 2019.

A specialist in parcel and part-load services in the industry, Shreeji Translogistics is known for its timeliness and reliable services. The company made a foray into Custom Bonded Trucking in 2002, which was a path-breaking move and highly applauded by the Airline Industry in India.

The company's network of offices is spread across India at key locations along with a network of branch offices and warehouses to support the services. The company owns more than 220 Trucks and has over 500 Outsourced Vehicles in various formats to meet every delivery requirement.

Disclaimer: The stock just highlights the stock's bonus issue 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.