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Padam Cotton Yarns Ltd on Wednesday, November 27, 2024, announced bonus shares for its shareholders, the penny stock in the textile products sector said in a regulatory filing. The company's Board of Directors, during their meeting held on November 27, 2024, approved the issuance of 38,73,000 bonus shares with a face value of ₹10 each, in a ratio of 1:1.
Under this arrangement, shareholders will receive one equity share of ₹10 for every one existing equity share they hold, subject to approval from shareholders.
The company also clarified that it had earlier inadvertently mentioned the number of bonus shares as 38,37,000 in the initial disclosure, which was corrected in a follow-up filing.
Here are the key details:
- Bonus Issue Ratio: 1:1 (One bonus share for every one existing share).
- Face Value: ₹10 per share.
- Number of Bonus Shares: 38,73,000.
- Shareholder approval in the EGM on December 25th
A bonus issue is typically aimed at rewarding shareholders and increasing the liquidity of their shares in the market.
It is pertinent to note that Padam Cotton Yarns is under Enhanced Surveillance Measure (ESM) Stage 2 and is traded on all trading days through a periodic call auction.
In a bid to control volatility in small-caps, the ESM was introduced by the SEBI on June 5, 2023, for companies that have a market cap of less than ₹500 crore.
Padam Cotton Yarns share price settled at ₹235.40, up 2% on the NSE. So far this year, the stock has surged over 413%, while the one-year return on the stock is more than 353%. The penny stock has given a return of more than 2600% in the last three years.
Investors must also note that penny stocks are generally regarded as highly speculative. While there can be sizeable gains in trading penny stocks, there are also equal risks of losing a significant amount of an investment in a short period.
Under this arrangement, shareholders will receive one equity share of ₹10 for every one existing equity share they hold, subject to approval from shareholders.
The company also clarified that it had earlier inadvertently mentioned the number of bonus shares as 38,37,000 in the initial disclosure, which was corrected in a follow-up filing.
Here are the key details:
- Bonus Issue Ratio: 1:1 (One bonus share for every one existing share).
- Face Value: ₹10 per share.
- Number of Bonus Shares: 38,73,000.
- Shareholder approval in the EGM on December 25th
A bonus issue is typically aimed at rewarding shareholders and increasing the liquidity of their shares in the market.
It is pertinent to note that Padam Cotton Yarns is under Enhanced Surveillance Measure (ESM) Stage 2 and is traded on all trading days through a periodic call auction.
In a bid to control volatility in small-caps, the ESM was introduced by the SEBI on June 5, 2023, for companies that have a market cap of less than ₹500 crore.
Padam Cotton Yarns share price settled at ₹235.40, up 2% on the NSE. So far this year, the stock has surged over 413%, while the one-year return on the stock is more than 353%. The penny stock has given a return of more than 2600% in the last three years.
Investors must also note that penny stocks are generally regarded as highly speculative. While there can be sizeable gains in trading penny stocks, there are also equal risks of losing a significant amount of an investment in a short period.
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First Published: Nov 27, 2024 7:39 PM IST
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