1:1 Bonus Shares: April 09 Fixed As Record Date; Bet To Be Eligible?

Promax Power Ltd. is a small-cap construction company with a Rs. 171.06 Cr. market capitalization. With over 16 years of proven project management and delivery expertise, construction capabilities, engineers, and domain specialists, Promax offers engineering, procurement, construction, project management, and commissioning services on a turnkey basis to the power sector. Promax Power is one of the latest multibagger stocks-it has shot up by 284% in only a single year-but the more intriguing news is that the company has revealed the record date for 1:1 bonus shares. The last traded price of the stock is Rs 136.85 apiece recorded on BSE on 12th March 2024.

Promax Power Bonus Shares

During the meeting of the Board of Directors held on February 20, 2024, they considered and approved bonus shares in the ratio of 1:1. According to the company, the bonus equity shares will be issued created out of profits or share premium out of free reserves and/ or securities account premium account of the company available as on March 31, 2023 according to the company.

The pre-bonus share capital of the company is Rs. 12,50,00,000/- consisting of 1,25,00,000 equity shares of Rs. 10/- each and post-bonus share capital is Rs. 25,00,00,000/- consisting of 2,50,00,000 equity shares of Rs. 10/- each.

Rs. 1250 lakhs is the free reserves and/or share premium required for implementing the bonus issue. The free reserve, securities premium available for capitalization and the date account and the retained earnings as on which such balance is available for capitalization are aggregating to Rs. 1500.83 Lakhs as of January 31, 2024, according to Promax Power.

Promax Power Bonus Shares Record Date

"Pursuant to Regulation 42 of the Listing Regulations, we wish to inform that Tuesday, April 09, 2024 has been fixed as the Record Date for the purpose of determining the list of shareholders eligible for allotment of Bonus Equity Shares, for which approval of Members, is obtained through Extra Ordinary General Meeting convened on 26th March, 2024," said Promax Power in a stock exchange filing on March 27, 2024.

Promax Power Share Price Target

"Promax Power Limited is an India-based company and engaged in the execution of engineering, procurement, construction (EPC - Power & Solar) projects for electrification, power substations, and underground cabling from 11kV to 220kV and along with this they are in turnkey projects too. Their business industry is really in demand and has scope to grow multifold in upcoming years. Understand it is a small size company with low volumes however their business is in demand, so if you are bullish on the Solar Energy industry and looking for a high-growth stock, it could be your choice. It has delivered 225.83% in one year. its current market cap is only 171, so invest wisely. Right now it is in overbought condition but still momentum is very strong. Investing in part will be a better decision. In Feb 2024, it surged 250% hence pullback and profit booking should be considered in the same percentage manner and up to 25 to 35% correction in such scripts is very common. 105 to 125 is a dip buying opportunity and do respect targets ranging from 165 to 300 within a 1 to 1.5-year span. Do follow strict stop loss at 80," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

"Promax Power is bearish on the Daily charts with strong resistance at 153. A Daily close below support of 125 could lead to a target of 106 in the near term," said AR Ramachandran from Tips2trades.

Disclaimer

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