This Small Cap Services Company Hits 20% Upper Circuit Ahead Of Bonus Issue Consideration

Shares of Escorp Asset Management are locked in upper circuit of Rs. 20.5 per shares. This is most likely ahead of the company's bonus share issue consideration slated for June 10, 2022.

About the company

Escorp Asset as per the company's site is a services company where services are taken at par with products. The company's services are classified as portfolio management services, personal finance advisory and institutional asset management.

Board meeting for bonus issue

The company's filing said "the Board of Directors of the Company is scheduled to be held on Friday, 10th June, 2022, inter alia, to transact the following business: 1. To consider increase in authorized share capital of the Company and subsequent alteration to the Memorandum of Association of the Company; 2. To recommend and approve issue of Bonus shares to the equity shareholders of the Company; 3. To approve the proposal of Migration of Company from SME platform of BSE to Main Board of BSE Limited as well as on the Main Board of NSE Limited; 4. Any other business with the permission of the Chair."

Company's fundamentals

The company is a debt free stock and has a high promoter promoter holding of 67.62%. Nevertheless, the stock's RoE is at a poor 0.01% and also the company has delivered poorly in net profit and operating income growth over the last 3 years.

Stock price trajectory

The stock's all time low and 52-week low price is Rs. 14 while its 52-week high price is Rs. 20.50. Now post the bonus share issuance, the stock's price shall further come down as per the specified proportion.