Multibagger Small Cap Jeweller Stock Declares Bonus & Stock Split Together

Veerkrupa Jewellers, a small cap stock has given a bonus issue and has also gone ahead and declared a stock split. This is a bonanza for shareholders of the company.

Bonus issue

Veerkrupa Jewellers has announced a 2:3 bonus issue of shares. This means for every 3 shares, you are likely to get 2 shares. Which means, if you hold 30 shares in the company you would receive 20 shares as bonus. The board of directors of the company has not fixed any record date and requisite approvals would be needed by the company before the shares are credited into the demat account.

Stock Split

The board of the company has also announced a stock split of shares to Re 1. This means the shares of the company would not be split to a face value of Re 1 from the current face value of Re 10. In all these things investors must note that the stocks are likely to fall after going ex bonus and ex stock split and hence it is hard to say whether it would finally give you returns. The company currently sells its branded products through showrooms only in Ahmedabad, Gujarat. The company in its annual report claims to have strengthened its brand portfolio with local, targeted marketing strategies aimed at different customer profiles, various markets and price segments and for various uses and occasions.

52-week high and low of the stock

Veerkrupa Jewellers stock hit a 52-week high of Rs 136.15 and a 52-week low of Rs 24.40 on the Bombay Stock Exchange. Now, if you see the price of the stock has rallied substantially from 52-week lows and giving you multibagger returns. However, we caution investors as to go with fundamentals of every company before investing.

Disclaimer

The above article is for information only. This is not a "buy", "sell" or hold recommendation from us. Neither the author, nor Greynium Information Technologies should be responsible for losses incurred based on the above article.