17:20 Bonus Issue: Multibagger IT Stock To Trade Ex-Bonus On November 20; Rises 148% YTD

Software products company, Olatech Solutions has locked at a new 52-week high this week ahead of turning ex-bonus on November 20th. The stock is going to issue bonus shares in the ratio of 17.20. In the trading week that ended on November 17th, the stock rallied by nearly 30%.

On November 17th, Olatech shares froze at a 5% upper circuit of Rs 239.60 apiece on BSE with a market cap of Rs 56.07 crore. This is also the new 52-week high of the company.

From a 52-week low of Rs 75, Olatech shares have rallied by a breathtaking 219.5% on BSE as of now. Year-to-date, the stock has rallied by at least 148.42% on the exchange.

As per the regulatory filing, Olatech fixed November 20th as the record date for the purpose of deciding the Members who shall be eligible for the allotment of the Bonus
Shares as per ratio. This will also be the ex-bonus date of the company.

In the 17:20 bonus ratio, Olatech will issue 17 bonus equity shares against the existing 20 shares fully paid-up Equity shares with face value of Rs 10 each.

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.

Olatech reported strong growth in September quarter of FY24. It posted a net profit of Rs 1.28 crore in Q2FY24 against a PAT of Rs 70.24 lakh in Q2FY23 and Rs 48.36 lakh in Q1FY24. Revenue from operations was also robust at Rs 6.57 crore in Q2FY24 as against Rs 2.11 crore in Q2FY23 and Rs 5.34 crore in Q1FY24.

As per Trendlyne data, Olatech's momentum score is at 76.7 which indicates as technically Strong. While its MACD signal is at 7.7 which is a bullish indicator. Olatech Solutions' weekly average delivery volume is 100%. The company has 4 bullish and no bearish candles active. Further, it is trading above 8 out of 8 SMAs, while it's performing above 6 out of 9 Oscillators in the bullish zone.

However, the RSI and MFI indicator of the stock is at 75.2 and 89.4 which signals overbought which could mean that the stock may record some pullback ahead.

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