1:1 Bonus Issue: 20th August Record Date; Should Market Participants Enter This Stock?

Since its incorporation on July 7, 1995, PVV Infra Limited has been involved in the construction of multi-story commercial and residential structures, landscaping, duplex housing, and housing for the low, medium, and high-income groups as well as EWS. With a market valuation of Rs 42.59 Cr, PVV Infra is a micro-cap firm. On Friday, the penny stock of the company ended at Rs 14.80 a share on the BSE following the announcement of the record date for 1:1 bonus shares.

PVV Infra Bonus Shares

"This is with reference to our letter dated Monday, July 08, 2024 in respect of recommendation made by the Board of Directors of the Company for issue of bonus shares to the shareholders in the ratio of 1 (One) new fully paidup equity share of Re. 10/- (Rupee Ten Only) each for every 1 (One) fully paid-up Equity Shares of Re. 10/- (Rupee Ten only), subject to the approval of the shareholders of the Company. Further, the shareholders of the Company have approved aforesaid issue of bonus shares by passing an ordinary Resolution through Annual general Meeting, of which scrutinizers report announced on 3rd August 2024. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Tuesday, 20th August, 2024 as the record date for the purpose ascertaining the eligibility of shareholders entitled for issuance of bonus shares by the Company," said PVV Infra in a stock exchange filing.

Important Note By PVV Infra For Shareholders Regarding Bonus Shares

"Pursuant to SEBI (Issue of Capital and Disclosure Requirements)(Second Amendment) Regulations, 2023 effective from 23rd May 2023, the allotment of shares in bonus issue shall be made only in dematerialized form and thus, all the eligible Members of the Company holding Equity Shares in physical mode are hereby advised to dematerialize their physical share certificates by contacting their respective Depository Participant (DP) on or before the Record Date for receipt of Bonus Equity Shares in their respective beneficiary Demat accounts. In case, shares of the Company are held in physical form as on the Record Date, the Bonus Equity Shares so entitled, shall be transferred to the Suspense Escrow Account opened by the Company in this regard," informed PVV Infra to stock exchanges.

PVV Infra Share Price Target

"PVV Infra Limited, a construction engineering company's price movement and market positioning have garnered the attention of many. The micro-cap company has a PE ratio of Rs. 14.44 against the sector PE of 20.02, suggesting undervaluation. It has also delivered an ROE of 6.01% and registered a P/B ratio of 0.88. In 52 weeks, the stock has traded within a range of Rs.10.08-35.83, suggesting high volatility. Regardless, as per my analysis, it is not a quality stock, and market participants can skip it when looking to invest in micro-cap stocks," recommended V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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