Bonus Issues, Stock Splits Of 3 Top Smallcap Stocks To Watch Out In October 2024; Do You Own Any?

Three smallcap companies JTL Industries, PC Jewellers and Power Mech Tech will in focus in October 2024 for their bonus issues and stock splits. One of them is even planning a double rewards, meaning both stock split and bonus, while another stock is a multibagger of 2024 with gains more than 230% so far.

Here are the details of these stocks:

PC Jewellers Stock Split:

One of the hot stock splits to watch out for is of leading gems and jewellery company, PC Jewellers Ltd. The company's board of directors are scheduled to meet on September 30, to consider and approve the alteration in the share capital of the Company by sub-division / split of existing equity shares having a face value of Rs.10/- each, fully paid up, as may be determined by the Board of Directors and consequent alteration of Memorandum of Association of the Company.

Hence, the chances of PC Jewellers' record date for a stock split in October are high.

At present, PC Jewellers share is at Rs 169.50 apiece. YTD, the stock is up by 237%. PC Jewellers is one of the fastest-growing jewellery retail chains having showrooms across 67 cities and 17 states.

JTL Industries Stock Split, Bonus Issue:

JTL Industries is scheduled to consider stock splits and bonus share proposals in a meeting held on October 3, 2024.

The plans to split its shares who has a face value of Rs 2 each, while it proposes to issue bonus shares to eligible shareholders. Hence, the ratios of stock splits and bonus issues could be announced on October 3, and the record dates for the double treats could be announced soon after.

Apart from this, JTL is also planning to increase its authorised share capital.

JTL Industries Limited (formerly known as JTL Infra Limited) is the flagship company of the Jagan Group of Companies, with its corporate office located in Chandigarh and four plants located pan-India. Since its inception in 1991, JTL Industries Limited has grown from a manufacturer of ERW Black Pipes to a producer of value-added products such as galvanized steel pipes, solar module mounting structures, and large-diameter steel tubes & pipes.

Currently, JTL shares are at Rs 228.70 apiece on BSE. YTD, the stock is down by 3.8%.

Power Mech Projects Bonus Issue:

1:1 Bonus Issue: This power company has revised its record date for bonus issue in the ratio of 1:1. The new record date and ex-date are fixed on Tuesday, October 8, 2024.

This date has been fixed for determining the Members entitled to the allotment of bonus equity shares in the ratio of 1:1. Accordingly, 1 (One) new fully paid-up equity share of Rs. 10/- each will be issued for every 1 (One) fully paid-up equity share of Rs. 10/- each held by the Members.

It was established in the year 1999 by an enthusiastic engineering entrepreneur S. Kishore Babu with the chosen motto of providing service with high quality, safety and timeline, the three virtues still holding the Company in high esteem.

Currently, Power Mech shares are at Rs 6701.35 apiece. YTD, the stock rallied by 50% on BSE.

Benefits of Stock Splits:

Brokerage Motilal Oswal's blog highlighted two benefits of stock splits. Here's what they are:

1. It makes the shares more accessible: High share prices are one of the primary reasons why companies choose to split shares. When a company's share price rises exponentially, it can dampen investor demand.

2. It increases liquidity: Another one of the main stock split benefits is that the shares of a company generally see increased liquidity. Since shares have now become more accessible to retail investors, more people would show increased demand for them, which can increase liquidity on the counter. Buying and selling shares will be far easier after a stock split.

Benefits Of Bonus Issues:

For investors, here are the benefits of bonus shares as per Nirmal Bang's website:

1) Investors do not have to pay any tax while receiving bonus shares from the company.

2) Bonus shares are considered beneficial for long-term shareholders of the company looking to multiply their investment.

3) Bonus shares are free of cost to shareholders as they are issued by the company, which increases the outstanding shares of an investor in the company and enhances the liquidity of the stock.

4) Bonus shares help build the trust of an investor in the company's business and operations because they have invested in the company and, in turn, gives capital to the investor.