4:1 Bonus Issue: 3 Smallcap Stocks To Trade Ex-Bonus Next Week; Do You Own Any?

Three smallcap stocks will be in focus for their bonus shares during the trading week from October 16th to 20th. They are Gensol Engineering, Kama Holdings, and Rudra Global Infra Products. One of them has rallied for seven consecutive days ahead of turning ex-bonus. Accordingly, these stocks will be in focus and see major movement as well.

Bonus shares are issued in a certain proportion only to the existing shareholders free of cost. Under these incentives, 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.

Gensol Engineering Bonus Issue:

This consultancy services company, Gensol Engineering will be the first to trade ex-bonus on October 17th for its bonus issue in the ratio of 2:1.

The October 17th is also the record date to determine eligible shareholders for the bonus shares.

The ratio of 2:1 means that the company will issue 2 bonus shares having a face value of Rs 10 each against every 1 existing share having a similar face value. The company has allotted nearly Rs 25.25 crore from its securities premium and reserve surplus account to pay for the bonus shares.

The Bonus Shares so allotted shall rank pari passu in
all respects with fully paid-up Equity Shares of the Company as existing on the Record Date.

On Friday, Gensol shares stood at Rs 2373.45 apiece, down by 1.72% on BSE. Its market cap was over Rs 2,900 crore. Year-to-date, Gensol shares have rallied by nearly 79% on the BSE.

Gensol is a microcosm of young thinkers, engineers and leaders dedicated to helping the world build solar power projects that maximise investor profits.

Kama Holdings Bonus Issue:

Yet another smallcap, Kama Holdings will turn ex-bonus on October 17th as well for its bonus issue in the ratio of 4:1.

The 4:1 ratio means that Kama Holdings will issue 4 bonus shares to shareholders on their existing 1 equity share held as of the record date.

Earlier, Kama said that bonus shares will be issued out of free reserves created out of profits and capital redemption reserve of the Company available as of March 31, 2023, which is to the tune of Rs 25,67,24,600. It said that the bonus shares will be dispatched within 2 months from the date of Board Approval i.e. by 31st October, 2023.

In 2023, Kama Holdings has already rewarded investors with a dividend payout of Rs 82 per share in August and Rs 84 per share in March this year. In FY23 alone, the company paid a dividend of 1660% amounting to Rs 166 per share.

On BSE, Kama Holdings share price ended at Rs 16,270.65 apiece, down by 0.74% on Friday. Its market cap is over Rs 10,442 crore. So far in 2023, the stock has rallied by over 31%.

The Company is a Core Investment Company (CIC). SRF Limited is a subsidiary of the Company which is a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. It is widely recognized for its R&D capabilities globally, especially in the niche domain of chemicals.

Rudra Global Infra Products Bonus Issue:

On October 13th, Rudra Global shares ended at Rs 138.60 apiece, up by 4.5% on BSE despite market bears. This would be its seventh consecutive day rally. Since October 5th, the stock has been bullish and rallied by nearly 29% on the exchange. The reason behind the strong buying in Rudra Global is that investors are looking to avail the benefits of the bonus issue which is nearing next week.

Rudra Global fixed October 18 as the record date to determine eligible shareholders for its 1:1 bonus issue.

The 1:1 bonus issue means that eligible shareholders will receive 1 bonus equity share of face value of Rs 5 for every 1 (one) fully paid-up equity share of Rs 5 of the Company.

The company is engaged in iron and steel products such as the manufacturing of billets and mild steel (MS), and thermomechanical treatment (TMT) bars.