Penny stock hit 5% upper circuit as Board declares 2:1 bonus issue and dividend
2 min read . Updated: 11 Mar 2023, 05:33 PM IST
Premium- With a market valuation of ₹13.51 Cr, SRU Steels Ltd. is a small-cap company that works in the commercial services industry.
With a market valuation of ₹13.51 Cr, SRU Steels Ltd. is a small-cap company that works in the commercial services industry. The company's sole line of business is trading in different kinds of iron and steel. The company has declared bonus shares in a 2:1 ratio and dividend for the financial year 2022-23.
SRU Steels said on Friday that its Board of Directors has declared “First interim dividend for the financial year 2022-23 of Rs. 0.10/- per share (i.e. 1% on Rs. 10/- fully paid up share), which shall be paid/ dispatched to the shareholders within 30 days of declaration, subject to the applicable taxes. The Record date for determination the eligibility of shareholder for payment of interim dividend was already announced i.e. March 20, 2023."
The Board of Directors also declared “Issuance of fully paid-up Bonus Shares in the ratio of 1 (one) fully paid share having face value of Re.10/- (Rupee ten only) each for every Two (2) fully paid-up shares having a face value of Re.10/- (Rupee ten only) each held, subject to the approval of shareholders of the Company by way of a special resolution and any other approval(s) of the concerned regulatory authorities."
The proposed issue of bonus equity shares will be out of capitalisation of sums from the securities premium account of Rs. 1,24,05,000/- and general reserve of Rs.2,75,54,500/-, according to SRU Steels.
During, Q3FY23, the company recorded a net income of ₹3.55 compared to ₹3.19 in Q3FY22. The company recorded net expenses of ₹3.34 Cr vs ₹3.10 Cr in Q3FY22. SRU Steels recorded an EBIT of ₹0.22 Cr compared to ₹0.09 Cr in the same quarter of FY22. SRU Steels said its net profit reached ₹0.10 Cr during the quarter ended December 2022 compared to ₹0.01 Cr during the quarter ended December 2021. The EPS of SRU Steels stood at ₹0.13 in Q3FY23 compared to ₹0.01 in Q3FY22.
On Friday, the shares of SRU Steels closed at an upper circuit limit of 5% at ₹16.91. The stock recorded a net volume average of 1,16,256 shares. On a YTD basis, it has fallen 1.11% so far in 2023. The stock touched a 52-week-high of ₹22.60 on (13/02/2023) and a 52-week-low of ₹14.85 (23/02/2023). During Q3FY23, the company recorded a promoter shareholding of 31.58% and a public stake of 68.42%.