17:20 Bonus Issue: Multibagger IT Stock To Issue Bonus Shares Soon, Gains 130% From 1-Year Low

Software solutions provider, Olatech Solutions on Saturday announced a bonus issue in the ratio of 17:20. The company plans to issue these bonus shares from its free reserve and securities premium account. Olatech is a multi-bagger and has rallied by over 130% from its 52-week low.

Ahead of the bonus issue announcement, Olatech shares advanced by 5% to end at Rs 169.75 apiece on BSE during Friday's trade. The current price level is an upside of 132.2% from its 52-week low of Rs 73.10 apiece.

As per the regulatory filing, the company will increase its existing authorized share capital from Rs 3 crore with 30 lakh shares having a face value of Rs 10 each to Rs 5 crore with 50 lakh shares having a face value of Rs 10 each.

That being said, the company's board in a meeting on October 7th approved bonus issues in the ratio of 17:20. This means that it will issue seventeen bonus shares having a face value of Rs 10 each for the existing 20 equity shares having similar face value.

The Bonus equity Shares will be issued out of the Free Reserve & Securities Premium Account of the Company available as of March 31, 2023, which is to the tune of Rs 1,98,90,000. Also, the Bonus issue will be implemented within 2 months from the date of the Board Meeting.

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.

OlaTech Solutions is engaged in software solutions such as NOC tools, Network monitoring, management & analytics, AAA solutions for users & devices, Data Centre Infrastructure Management, ERP, CRM, Digital Marketing Solutions i.e. SEO, SEM, SMM, AdWords, Web development, ORM, Media buying etc. They have gained experience by collaborating with clients across verticals such as Telcos, ISPs, Enterprises, Data Centre Service Providers & Public Sector.