1:1 Bonus Shares: 19 July Record Date, Buy Range Rs. 300-325, Stop-Loss Rs. 270; Target?

Siddhika Coatings is the largest contract texture paint company in India for a single brand. With its headquarters situated in New Delhi, SK Kaken Ltd. is a Japanese firm with over ten offices throughout India, including Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai. Siddhika is its marketing and application partner. Siddhika is a well-known name in the architectural coatings, supplies, and application business, having been associated with SKK for more than 20 years. The company recommended a bonus issue of equity shares in the proportion of 1 equity share of Rs 10/- each for every 1 equity share of Rs 10/- each held by the equity shareholders of the company as on the record date fixed 19 July 2024.

Siddhika Coatings Bonus Shares

"The Board of Directors of the Company in its meeting held on Monday, May 17, 2024 have recommended the issuance of bonus shares in the ratio of 1:1 [i.e. 1 (One) fully paid up equity shares for every 1 (One) equity shares held.] if the resolution for issuance of bonus shares as recommended by the Board; shall be approved by the members of the Company then additional 30,89,500 paid up equity shares shall be allotted to the members post completion of process of bonus issue. So, the total paid up share capital post bonus issue shall be Rs. 6,17,90,000/- which shall exceed the present Authorised Share Capital of the Company. So, in view of the proposed issuance of bonus shares, the present Authorised Share Capital of the Company need to be increased from Rs. 3,25,00,000/- (Rupees Three Crore Twenty Five Lakhs Only) to Rs. 11,00,00,000/- (Rupees Eleven Crore only) by creating Rs. 7,75,00,000 divided into 77,50,000 (Seventy Seven Lakhs Fifty Thousand) equity shares of Rs. 10/- each. Further, in view of increasing the Authorised Share Capital it is also necessary to amend Clause V of the Memorandum of Association to increase the Authorised Share Capital from Rs. 3.25 Crore to Rs. 11 Crore," said Siddhika Coatings in a regulatory filing.

Siddhika Coatings Bonus Shares Record Date

"As on March 31, 2024 total free reserves and surplus of the Company is Rs. 22,03,87,263/- and Security Premium Account is Rs. 4,06,85,450/-. With a view to rationalize the capital structure, Board of Directors in its meeting held on May 17, 2024 have proposed to issue bonus shares at the ratio of 1:1 [i.e. 1 (One) fully paid up equity shares for every 1 (One) equity share held] to the shareholders appearing in the Register of Members as on the Record Date i.e. July 19, 2024. The new equity bonus shares to be allotted and issued shall be subject to the terms of Memorandum & Articles of Association of the Company and shall rank pari passu in all respects with the existing fully paid equity shares of the Company," Siddhika Coatings informed stock exchanges.

Siddhika Coatings Share Price Target

"Siddhika Coatings Ltd's current market movement reflects strong price growth, making it a lucrative option for investors. Those willing to explore the potential of these stocks may consider entering the buying range of Rs. 300-325, for price targets ranging from Rs. 345 to Rs. 450. To manage the associated risks, I recommend setting up a stop loss at Rs. 270. Meanwhile, traders and investors looking to capitalize on this stock's momentum should consider holding it for 5-80 weeks," V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) commented.

Disclaimer

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