Hotel Stock Rallies 44% After 1:1 Bonus Issue; Up 131% In 6 Months, Shares To Trade Ex-Bonus Soon

Shares of Small cap stock operating in the Hotels & Resorts industry Sinclairs Hotels Ltd will trade ex-bonus soon. On December 22, the company recommended its maiden bonus in the proportion of 1:1 which implies shareholders will be eligible to receive 1 bonus share for every 1 share held as of the record date. Sinclairs Hotels shares last closed 1.69% higher at Rs 205.65 per share on BSE. Sinclairs Hotels shares soared 108.23% in the last 3-months and gained 131.49% in the last six months.

On 22 December, shares of Sinclairs Hotels traded at Rs 205.65% per share. Since the announcement of the issue of bonus shares by the company, the share price of Sinclairs Hotels Ltd has gained nearly 44%.

Sinclairs Hotels Announces Bonus Share:

In an exchange filing on December 19, 2023, the company said, "The Board of Directors of the Company at its meeting held today i.e., December 22, 2023, inter alia, has considered and approved the Issue of fully paid-up Bonus equity shares of Rs. 2/- each in the ratio of 1:1 i.e., 1 (One) Bonus Equity Share of Rs 2/- for every 1 (One) Equity Share of Rs 2/- held by the members of the Company as on the Record Date to be fixed by the Board thereof for the purpose. The bonus issue of equity shares is subject to the approval of shareholders in an Extraordinary General Meeting of the Company."

Sinclairs Hotels Ltd Bonus Issue Record Date:

In an exchange filing on January 12, 2024, the company said, " The Company has fixed Monday, January 29, 2024, as the 'Record Date' for the purpose of ascertaining the eligibility of Shareholders for the issuance of fully paid-up Bonus Shares in the ratio of 1:1 (i.e. One equity share of Rs. 2/- each fully paid up for every One existing equity share of Rs. 2/- each), subject to approval of Shareholders which is being obtained in an Extra Ordinary General Meeting of the Company scheduled on January 18, 2024."

Sinclairs Hotels Stock Performance & Return:

The stock's 52-week high price is Rs 319.00 per share and the 52-week low price is 92.53 per share, respectively. The company commands a market capitalisation of Rs 762.11 crore. Sinclairs Hotels shares gained 131.49% in the last 6 months, jumped 170.56% in the last 1 year, rallied 298.06% in the last 2 years, and delivered a return of 541.53% in the last 3 years. Sinclairs Hotels shares offered a return of 333.01% in the last 5 years.

About Sinclairs Hotels Ltd:

According to the company website, Sinclairs Hotels and Resorts owns and operates nine properties in India at Burdwan, Siliguri, Darjeeling, Kalimpong, and Dooars in West Bengal, Gangtok and Yangang in Sikkim, Ooty in South India and Port Blair in the Andamans. In October last year, the company completed its third buyback of 15,20,000 equity shares of face value of Rs. 2 each at a price of Rs. 200 per equity share payable in cash. The Buyback was proportionate basis through the Tender Offer process. The total payout towards buyback was Rs.30,40,00,000 excluding Company's expenses for the Buyback and tax.