PremiumFour stocks namely Commercial Syn Bags, Dev Information Technology, Mafatlal Industries, and Maharashtra Seamless will be in focus on November 25 as they will turn ex-split and ex-bonus on this day. These stocks are multi-baggers and have given hefty returns between 100% to 450% to their investors in the last 2 years. 3 of the stocks are small-caps, while one is midcap. On Thursday, these four stocks witnessed huge buying sentiments which led to gains between 2% to 7% during the day. Ex-date is one day prior to the record date of a company's corporate actions such as dividends, bonus issues, stock splits, and rights issues among others.
Bonus shares are issued in a certain portion by a company to existing shareholders. These shares are free of cost for investors as they are a form of incentive given by the company. Notably, face value remains the same post-bonus issue. Among the benefits of bonus issue are --- increase in the number of outstanding equity shares; reduces the share price of a stock; reduces free reserves and surplus of a company; creates implicit value per equity share; and raises liquidity in equity shares.
In regards to stock split, already owned equity shares are sub-divided in a certain proportion which is decided by a company to improve liquidity by breaking it into a smaller sizes. The face value of a stock gets trimmed as well. After the stock split, a stock becomes affordable.
Here's the list:
Commercial Syn Bags:
On November 24, Commercial Syn Bags (Comsyn) witnessed a bullish sentiment. The stock closed at ₹328.15 apiece up by 3.14%. The smallcap's market cap is around ₹437.01 crore.
Indore-based Commercial Syn Bags is the country's top quality manufacturer and exporter of FIBC, Big Bags and Food Grade FIBC, Pond Liner, Tarpaulin, BOPP Bags, PP Fabric, PP Woven Sacks, Conductive Bags, Conductive Liners, Baffle Liners.
Comsyn will give two new equity bonus shares to shareholders against one existing share ---- taking the ratio to 2:1. The bonus issue has a face value of ₹10 each. The company fixed November 25 as the record date for determining eligible shareholders for the bonus issue.
The ex-bonus date for Comsyn shares is the same as the record date i.e. November 25 --- because of the settlement option in this stock is 'T+1'.
Last month, Comsyn said that the bonus shares will be issued out of the Security Premium Account/Free Reserves and/or accumulated surplus of profits available for distribution among the holders of existing fully paid equity shares of ₹10 each of the company.
Comsyn plans to dispatch bonus shares latest by December 21, 2022.
In a year, Comsyn shares have climbed by more than 41%. However, the shares have emerged as multi-bagger by skyrocketing by nearly 429% on Dalal Street in 2 years. The shares were merely around ₹62 apiece on November 24, 2020.
Maharashtra Seamless:
Incorporated in 1988, Maharashtra Seamless is the country's leading manufacturer of ERW and Seamless pipes and Tubes.
On BSE, Maharashtra Seamless shares closed at ₹778.50 apiece marginally up from the previous closing. The midcap has a market cap of ₹5,215.92 apiece.
In a year, Maharashtra Seamless shares have jumped by over 51%. But the stock is a multibagger with gains of nearly 208% in 2 years. The stock was near ₹253 level on November 24, 2020.
The company has fixed November 28 as the record date for determining eligible shareholders for bonus issue in the ratio of 1:1. This means, the company will issue one new bonus equity share on the existing one share.
Dev Information Technology:
On Thursday, DEVIT shares finished at ₹236.50 apiece up by 4.39% on BSE. The smallcap stock has a market cap of ₹261.12 crore.
Compared to its 52-week low of ₹103.05 apiece which was recorded on March 4, DEVIT shares have advanced by 129.50% as of now.
Dev Information Technology is an IT-enabled services company. It works together with its clients across the globe to empower their businesses with the right mix of information technology, innovation, and digital transformation.
The company has announced a sub-division of 1 equity share having a face value of ₹10 each --- into 2 equity shares having a face value of ₹5 each. The company fixed November 25 as the record date.
Just like Commercial Syn Bags, DEVIT also has a settlement type option of 'T+1' and hence its ex-split date is the same as record date.
Mafatlal Industries:
The company has fixed November 25 as the record date to determine eligible shareholders for the stock split of one existing equity share having a face value of ₹10 each into five equity shares with a face value of ₹2 each. The stock split ratio is 5:1.
The stock has a settlement type of 'T+1' and hence it will turn ex-date on the same day as the record date.
On Thursday, Mafatlal Ind shares closed at ₹383.50 apiece up by ₹21.20 or 5.85% on BSE. The company's market cap is around ₹540.60 crore.
In a year, Mafatlal stock has surged by nearly 122%. In 2 years, the stock has climbed by more than 337% on D-Street. The stock was near ₹87 level on November 24, 2020.
Mafatlal Industries is into diverse fields of Textiles, Rubber Chemicals, Information Technology, Real Estate, E-commerce, and Healthcare.