Multibagger stock recommends 1:10 bonus shares: Key takeaways to note
A small cap company with a market worth of ₹240.95 crore, Shubham Polyspin Ltd. operates in the consumer discretionary industry.
A small cap company with a market worth of ₹240.95 crore, Shubham Polyspin Ltd. operates in the consumer discretionary industry. One bonus share will be issued for every ten shares that shareholders hold, according to a recommendation made by the company's board of directors. The upcoming 10th annual general meeting (AGM) of the firm, set for September 12, 2022, is when members and shareholders will vote on whether to approve the bonus share issuance.
The company has said in a regulatory filing that its Board of Directors has “accorded to capitalize a sum of Rs. 1,10,20,000/- from the Credit balance of the Profit & Loss Account for distribution among the holders of existing fully paid equity shares of Rs. 10/- each of the Company, whose names will appear in the Register of Members/Beneficial Owners’ of the Company on Record Date to be decided by the Board of Directors for this purpose, as an increase of the nominal amount of the equity share capital of the Company held by each such shareholder, and not as income or in lieu of dividend, credited as 11,02,000 new fully paid equity shares of Rs. 10/- each as bonus shares in the proportion of 1 (One) new equity bonus share of Rs. 10/- each for every 10 (Ten) existing fully paid equity share of Rs. 10/- each held."
They further added that “The existing Authorised Capital of the Company is Rs. 12,01,00,000/- (Rupees Twelve Crores One Lakh Only) comprising of 1,20,10,000 Equity Shares of face value of Rs. 10/- each. In view of proposed bonus issue it would be necessary to increase the said Authorised capital to Rs. 13,01,00,000 (Rupees Thirteen Crores One Lakh only) comprising of 1,30,10,000 Equity shares of face value of Rs. 10/- each. The present Authorized Share Capital of the Company is Rs. 12,01,00,000/- out of which share capital of Rs. 11,02,00,000/- is paid-up capital. There is balance of Rs. 2,61,35,000/- to the credit of profit and loss account as on 31st March, 2022 which is available for capitalization."
Tuesday's closing price for Shubham Polyspin Ltd shares was ₹218, down ₹5.00% from the previous close. The stock has produced a multibagger return of 897.04% over the past five years and a multibagger return of 413% during the past three years. The stock has gained 50.38% over the past year, and on a year-to-date basis, it has climbed 25.66% so far in 2022.
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