Corporate actions such as a dividend, stock split, buyback etc. and its proper determination helps to even know the financials of a concern and helps to ensure whether or not an individual should participate or invest in that particular stock that has come up with a corporate action announcement.
The role of shareholders as well as the company's board is crucial when it comes to a corporate action.
So, here are the 2 corporate announcements that are announced or under consider that you should acknowledge:
BSE- Bonus issue:
The company's board is slated to meet on February 8, 2022 to consider and approve the financial results as well as the bonus issue. The public shareholding in the counter has increased to over 60 percent in the September ended quarter of Fy22. Also, while mutual funds have increased holding, DIIs have reduced their holding.
The company has a monopoly in the business, while it has maintained good RoA. The various limitations per se the stock are the low promoter shareholding of 0%. Also, its financials are not very healthy with revenue for September ended qtr of Fy 22 increasing sequentially to Rs. 202 crore. Net profit has also come in higher than the earlier quarter at Rs. 62.81 crore.
Notably with the said bonus share announcement the company's share price shall come down from the current price level of Rs.
GE Shipping- Buy back approved:
The Great Eastern Shipping Company Limited (the "Company") at its meeting held on December 27, 2021 has inter-alia: 1. Approved a proposal for the Company to buyback ("Buyback") its own fully paid-up equity shares of a face value of ₹ 10/- each for an amount not exceeding ₹ 225 crores including transaction costs which are payable on buyback of Equity Shares on the stock exchange platform namely brokerage, applicable taxes such as securities transaction tax, GST, stamp duty, exchange transaction charges, SEBI turnover fees etc.
The buyback has been decided for a price not exceeding ₹333/-. This from the current price level implies gains to the tune of 14 percent in the short term.
The company's buyback plans indicate its bullishness and confidence in itself and this is usually positive for the stock price.
The story is not a recommendation to buy into stocks and highlights the likely corporate actions.