Maximize Returns: 1:2 Bonus Issue, Record Date To Be Fixed In The Meantime; Time to Invest?

SBC Exports Limited is a well-known brand in India's garment sector. It is among the top producers of handcrafted carpets made of silk and wool. Following the company's announcement of 1:2 bonus shares, SBC Exports' shares finished Friday 4.50% higher at Rs 23.70 per share, with a market valuation of Rs 750.46 Cr.

SBC Exports Bonus Shares

"We wish to inform you that the Board of Directors of the Company at its meeting held on Friday, 24th January, 2025 has considered, recommended and approved the Issue of Bonus Shares in the ratio of 1:2 i.e., 1 Equity Share for every 2 equity shares held by the existing equity shareholder of the Company as on Record Date to be fixed in the meantime. The bonus issue of equity shares is subject to the approval of the shareholders through Postal Ballot, and any other applicable statutory and regulatory approvals, as may be required. The Bonus shares once allotted shall rank pari-passu in all respects and carry the same rights of the existing Equity Shares and shall be entitled to participate in full in any Dividend and other corporate action, recommended and declared, if any, after the issue and allotment of such Bonus Shares," said SBC Exports in a stock exchange filing.

SBC Exports Bonus Issue Update

"Subject to In-principal approval accorded by the exchange pertaining to the Issue of Bonus Shares and subject to approval of the shareholders through Postal Ballot by way of remote e-voting process. This is to inform you that the board has decided in its meeting held today i.e. 24th of January, 2025, that in case of fractional shares, if any, arising out of the issue and allotment of bonus equity shares, the Board is authorized to deal with such fractions for the benefit of the eligible shareholders, including but not limited to, allotting the total number of new equity shares representing such fractions to Any Independent Director of the Company appointed by the Board of Directors who would hold them in trust as trustee for such Shareholders and shall, as soon as possible, sell such equity shares at the prevailing market rate and the net sale proceeds of such equity shares, after adjusting the cost and the expense in respect thereof, be distributed among such Shareholders who are entitled to such fractions in the proportion of their respective fractional entitlements," SBC Exports said in a stock exchange filing.

SBC Exports Share Price Target

"SBC Exports stock price is slightly bullish on the Daily charts with strong support at 22.5. A Daily close above resistance of 24.35 could lead to a target of 28.2 in the near term," said A R Ramachandran, Independent Research Analyst.

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