6:1 Bonus Issue Soon: Rs 100-To-3,350, Multibagger Smallcap Stock Hits Back-To-Back 5% Lower Circuits

Real estate stock, Kesar India has hit back-to-back 5% lower circuits and Wednesday was no different. The stock has been under selling pressure for seven consecutive sessions, falling by over 18.5% on BSE. Kesar India is among the upcoming stocks that will issue bonuses to its investors. The bonus issue is in the ratio of 6:1.

Kesar India Share Price:

On March 13th, Kesar India's share price froze at a 5% lower circuit to Rs 3,351.15 apiece on BSE. The smallcap's market valuation is around Rs 1,183.09 crore.

In recent times, smallcap stocks broadly are in red due to their expensive valuations and investors are booking in gains.

Kesar's share has been hitting a 5% lower circuit from March 5 to 13th. The last time Kesar was in green was on March 2, 2024, at Rs 4,114.15 apiece. That being said, since March 5th, the stock has tumbled by 18.5%.

But Kesar is still a multi-bagger. Despite the latest selloffs, Kesar India's stock has jumped by a whopping 3,237.79% on BSE compared to its low levels.

Kesar has a 52-week low of Rs 100.40 apiece, while its 52-week high is at Rs 4,319.85 apiece.

Kesar India Bonus Issue:

Kesar India has fixed Tuesday, March 19, 2024, as the Record Date, to ascertain the eligibility of shareholders entitled to issue Bonus Equity Shares in the proportion of 6 (Six) Equity Shares of Rs. 10/- each for every 1 (One) existing Equity Share of Rs. 10/- each, subject to the approval of shareholders which is being obtained through Extra-Ordinary General Meeting.

The bonus issue is the ratio of 6:1.

The pre-bonus paid-up equity share capital as of the date of this letter is Rs. 3,53,04,000 consisting of 35,30,400 equity shares of Rs. 10/- each. The post-bonus paid-up equity share capital is expected to be around Rs. 24,71,28,000 consisting of 2,47,12,800 equity shares of Rs. 10/- each.

For the bonus issue, the company has free reserves and a share premium of Rs 27.39 crore.

The company plans to complete the bonus shares allotment by April 14, 2024.

Kesar India Earnings:

In Q3FY24, the company reported revenue from operations of Rs 18.50 crore, down from Rs 39.75 crore in Q3FY23 and Rs 21.25 crore in Q2FY24.

Profit after tax (PAT) stood at Rs 5.25 crore in Q3FY24, as against Rs 11.75 crore in Q3FY23, and Rs 6.50 crore in Q2FY24.

The company also approved to increase its authorised share capital from Rs 10 crore to Rs 40 crore.

About Kesar India:

The Company is primarily operating in Nagpur and focused on the development of Residential & Commercial Projects. Kesar Group comprises a varied business portfolio that includes real estate development.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.