Padam Cotton Yarns, a penny stock engaged in the business of textile products, declared its first-ever bonus issue on November 27. The record date for the bonus reward is likely to be announced in December 2024 or January 2025. Ahead of the bonus, investors cheered and carried a massive buying trend in the stock. Padam Cotton Yarns has now touched a new 52-week high.
Padam Cotton Yarns Share Price:
Padam Cotton Yarns' share price closed at 2% upper circuit of Rs 235.40 apiece on BSE, with a market cap of Rs 111.32 crore. This will also be the new 52-week high of the penny stock. Its price-to-equity ratio is at 17.67x, while its return to equity is strong at 50.38%.
YTD, the stock has rallied by a whopping 390% on BSE. Its stock price was merely at Rs 48.05 apiece at the start of 2024.
Padam Cotton Yarns:
The company's board have recommended issuing 38,73,000 bonus shares having a face value of Rs. 10/- in a ratio of 1:1 i.e. One (1) Equity Share of a face value of Rs. 10/- each for every One (1) existing Equity Share of the face value of Rs. 10/- each subject to the approval of the shareholders.
Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.
Padam Cotton Yarns is likely to utilise up to Rs 3.87 crore of free reserves and surplus for bonus issues. As of September 30, 2024, the company had profits of Rs 5.55 crore.
Although the record date is not declared yet, Padam Cotton Yarns plans to complete its bonus issue action and credit them to the respective demat account of the eligible Shareholders within two (2) months from the date of the Board's approval i.e. on or before January 26, 2025.
This will be the first-ever bonus issue of Padam Cotton Yarns. The company has so far not carried any stock split. While it has only rewarded 3 dividends since September 2002. On November 27, 2024, the company turned ex-dividend for the first time in 20 years for an interim dividend of Rs 1 per share.
About Padam Cotton Yarns:
Padam Cotton Yarns Limited ('PCYL', or 'the Company'), a public limited company, incorporated on the 2nd day of November 1994 under the Companies Act, 1956 based in Karnal, Haryana. PCYL is listed on the BSE (formerly Bombay Stock Exchange) in India. The Company has yet to commence commercial production.
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