Double Benefit In 1 Stock: 1:5 Bonus Issue, 1:5 Stock Split - 25th September Record Date; BUY/SELL?

The business model used by Starlineps Enterprises Ltd. is wholesale B2B. The firm provides a wide variety of precious stone options to its clientele, as well as studded gold and silver jewellery to wholesalers and retailers. Monday saw Starlineps Enterprises' shares close at the 5% upper circuit limit of Rs 88.55 per share, with the company's market capitalisation rising to Rs 382.80 following the announcement of the record date for the combo benefit of a 1:5 stock split and 1:5 bonus shares.

Starlineps Enterprises Record Date For Stock Split & Bonus Shares

The Board of Directors have fixed 25th September, 2024 as the record date for the purpose of sub-division of 1 (One) equity share of the face value of Rs 5/- each fully paid-up into 5 (Five) equity shares of the face value of Re. 1/- each fully paid-up as well as 1:5 i.e. 1 (One) bonus equity share of the face value of Re. 1/- each fully paid up for every 5 (Five) existing equity shares of face value of Re. 1/- each fully paid up.
The bonus shares will be credited/dispatched within 2 months from the date of Board's approval i.e. on or before 7th October, 2024, said Starlineps Enterprises in a stock exchange filing.

Starlineps Enterprises Bonus Shares & Stock Split Approval

"We hereby inform your good selves that the Stock Exchange i.e. BSE Limited has granted In-principle approval vide Letter No. LOD/Bonus/BN-IP/DA/923/2024-25 dated 13/09/2024 for issue and proposed allotment of not exceeding 4,32,30,000 Bonus equity shares of Re. 1/- each in the ratio of 1 (one) new equity share for every 5 (five) existing equity shares held in the Company," said Starlineps Enterprises in a regulatory filing on 14th September 2024.

"After the end of financial year, Board of Directors of your Company at its meeting held on 8th August, 2024, has decided to pass following Resolutions through postal ballot process: Increase in the Authorized Share Capital of the Company from Rs. 22,00,00,000 divided into 4,40,00,000 Equity Shares of Rs. 5/- each to Rs. 37,00,00,000 divided into 7,40,00,000 Equity Shares of Rs. 5/- each. Sub-division/split of Equity Shares of the Company from face value of Rs. 5/- each to Re. 1 each and consequential amendment in Clause V of the Memorandum of Association of the Company. Proposal of issuance of Bonus equity shares to the equity shareholders of the Company in the ratio of 1:5 i.e. 1 (One) Equity Share for every 5 (Five) Equity Shares having a face value of Re. 1/- (considering the post sub-division/split of face value of equity shares)," the company informed stock exchanges.

Starlineps Enterprises Share Price Target

"StarLineps stock price is slightly bullish on the Daily charts with strong support at 83.75. A Daily close above resistance of 96 could lead to a target of 127 in the near term," said A R Ramachandran, Independent Research Analyst.

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