2% Upper Circuit: Multibagger Small Cap Stock Sets Record Date For 2:1 Bonus Shares; Buy?

Intellivate Capital Ventures is a small-cap company in the industrial sector. On Monday, the stock opened on the BSE at a 2% upper circuit limit at Rs 124.40 apiece. The rally on the stock price was witnessed after the Board of Directors of the company fixed the record date for bonus shares.

"This is with reference to our letter dated Friday, December 29, 2023 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 2 (Two) new fully paid-up equity share of Re. 1/- (Rupee One Only) each for every 1 (One) fully paid-up Equity Shares of Re. 1/- (Rupee one only), subject to the approval of the shareholders of the Company," said Intellivate Capital Ventures in a stock exchange filing.

"Further, the shareholders of the Company have approved aforesaid issue of bonus shares by passing an Special Resolution in the extra-ordinary general meeting held on Saturday, 27 January, 2024. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Wednesday, 07th February, 2024 as the record date for the purpose ascertaining the eligibility of shareholders entitled for issuance of bonus shares by the Company," said the company in a regulatory filing.

By announcing a note for physical shareholders on behalf of bonus shares, the Board of Directors informed to stock exchanges that "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 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."

The shares of Intellivate Capital Ventures reached a 52-week-high of Rs 128.21 on (28/12/2023) and a 52-week-low of Rs 12.21 on (06/02/2023). In the last 1 year, the stock has generated a multibagger return of 918.84% and has generated 210.92% in the last 6 months.

Intellivate Capital Ventures Share Price Target

Intellivate Capital Ventures is slightly bullish on the Daily charts but faces strong resistance at 127. A daily close above this resistance could lead to a target of 152 in the near term. Strong support will be at 111.8, said AR Ramachandran from Tips2trades.

Disclaimer

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