1 Stock-Split Declared, 1 Bonus Issue To Be Announced Soon: Details Here

Board of TPL Plastech Ltd considered the proposal for sub-division of 1 (One) equity share of the Company having face value of ₹10/- each into 5 (Five) equity shares having face value of ₹2/- each. Meanwhile, board of Shubham Polyspin Ltd is considering recommendation of bonus equity shares after gaining 42% in just one month. The board of directors of the company will meet on August 13, 2022 to consider and approve bonus issue. Check key details below:

1. Shubham Polyspin Ltd

Shubham Polyspin Ltd has become a much sought-after brand in the PP yarn sector and as polypropylene manufacturers across the globe over a period of 8 years, according to its website. Shubham Polyspin is an experienced manufacturer of polypropylene products like PP yarn, narrow fabrics etc.

The board of directors of the company in their BSE filing stated, "Shubham Polyspin Ltdhas informed BSE that the meeting of the Board of Directors of the Company is scheduled on 13/08/2022 ,inter alia, to consider and approve With reference to the above, we have to inform you that the next meeting of the Board of Directors of the Company is scheduled to be held on 13th August, 2022 inter alia: 1. To take on record Unaudited Financial Results for the quarter ended on 30th June, 2022 2. To consider recommendation of Bonus equity shares 3. To review business activities of the Company 4. To consider any other matter with the permission of the Chairman In continuation of our letter dated 1st July, 2022, the period of closure of trading window shall be from 1st July, 2022 till 15th August, 2022 (Both days inclusive) i.e. 48 hours from the declaration of financial result for the quarter ended on 30th June, 2022 & other matters. This is as per Regulation 29 and other relevant Regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015."

The board of directors will now meet on August 13, 2022 to consider issuing of bonus shares and other aspects.

Stock Outlook: The current market price of the stock is Rs 283.50 apiece with a gain of 5% in today's trading till 11:51 am. The 52-week high of the stock is Rs 283 apiece and 52-week low is Rs 112 apiece.

Multibagger Returns: The stock has given 1192% return in 5 years, 532% return in 3 years, and 130% in 1 year. It has a market capitalization of Rs 312 crore.

2. TPL Plastech Ltd

TPL Plastech Limited is India's second largest manufacturer of drums, especially Bulk Packaging i.e. 210 Ltr to 250 Ltr capacities. Today, the portfolio consists of a comprehensive range of narrow mouth, wide mouth and open top drums ranging from 25 Ltr to 250 Ltr capacity. The company has a market capitalization of Rs 272 crore.

Recently, the board of directors of the company in their BSE filing specified, "The Board considered the proposal for sub-division of 1 (One) equity share of the Company having face value of %10/- each into 5 (Five) equity shares having face value of %2/- each, subject to regulatory/statutory approvals as may be required and the approval of the members of the Company."

Further, the Board recommended consequential amendments in the Capital Clause of the Memorandum of Association of the Company, subject to approval of the members of the Company. The record date for the sub-division of equity shares shall be decided by the Board and will be intimated to the exchanges.

Stock Outlook: The current market price of the stock is Rs 174 apiece with a gain of 0.87% till 12:03 pm. The 52-week high of the stock is Rs 228 apiece while the 52-week low is Rs 105 apiece.

Multibagger returns: The stock has given a return of 1.6% in 1 year, 248% in 3 years, and fallen 27% in 5 years.

3. What Are Bonus Shares? Explain reasons for issuing bonus shares

When a company issues some additional shares and decides to offer them to its current shareholders based on number of shares possessed by them. The key feature of bonus share is that the company issues these shares to shareholders without any extra cost.

Bonus shares are issued under the circumstance when a company fails to pay a dividend to its existing shareholders as a result of lack of funds despite earning decent profits for a particular quarter. In such a situation, the company seeks to issue bonus shares to the current shareholders instead of making the dividend payment. Bonus shares are unusually offered to the shareholders after determining their current holding in the company. The process of issuing bonus shares to the shareholders is also known as capitalization of profits as it is issued out of profits or company's reserves.

What Is Stock Split?
When a company announces stock split, it leads to increased number of shares of that company with the market cap remaining same. The current shares split with the underlying value remaining similar. When the number of shares rise, the price per share declines. The companies go for stock split to make the share more affordable for investors who may find it difficult to buy the shares of that company due to high prices.