1:5 Bonus Issue: Penny Stock Below Rs 5 Revises Record Date; So, When Will This Stock Be Ex-Bonus?

Textile products maker, Akshar Spintex has revised its record date for bonus issue in the ratio of 1:5. Now, this penny stock trading below Rs 5 apiece will not turn ex-bonus on February 8 but instead next week. Accordingly, the stock will be in focus.

Akshar Spintex Bonus Issue:

As per the regulatory filing on February 6, 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 --- (One) Equity Shares of Re. 1/- each for every 5 (Five) existing Equity Share of Re. 1/- each
held as on the above-mentioned record date.

In general terms, 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.

On BSE, Akshar's share price closed at Rs 4.59 apiece, down by 0.43% with a market cap of Rs 114.75 crore. The stock's price-to-equity ratio is at 19.33x, while its return on equity (RoE) is at 13.96% which is in the normal range.

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.

As per Trendlyne data, the company's weekly average delivery volume is 100%. However, the stock price is trading below 8 out of 8 SMAs, while it is trading below 7 out of 9 Oscillators in the bearish zone.

Also, the stock's RSI is 40.5, and in general terms, this indicator below 30 is considered oversold and above 70 overbought. Hence, Akshar's RSI is in the normal range. Meanwhile, its MFI is at 25.6, and below 30 is considered oversold, hence there are chances for the stock to rebound.

Disclaimer: The stock just highlights the 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.