2:3 Ratio: Record Date To Be Fixed For Bonus Issue; Stock For Savvy Investors?

Cotton yarn and other products are produced by the publicly traded Padam Cotton Yarns Limited (PCYL). Its headquarters are in Karnal, Haryana, and it was incorporated in 1994. Following the Board of Directors' announcement of 2:3 bonus shares, Padam Cotton Yarns' shares closed Friday at a 2% lower circuit limit at Rs 184.55 per share, with a market capitalisation of Rs 142.95Cr.

Padam Cotton Yarns Bonus Shares

The Board of Directors considered and approved "To Issuance of Bonus Shares in the ratio of 02:03 i.e. Two (02) Bonus Equity Shares of face value of Rs. 10/- each for every Three (03) existing Equity Share of face value of Rs. 10/- each held by the Shareholders of the Company as on Record Date to be fixed for bonus issue. The Bonus Issue of Equity Shares is subject to approval of the shareholders and other applicable statutory and regulatory approvals, as may be required," said Padam Cotton Yarns in a stock exchange filing on 24th January, 2025.

"Subject to obtaining the Shareholders approval and other Statutory/Regulatory approvals, as may be necessary, the Bonus Shares shall be credited to the respective demat account of the eligible Shareholders within two (2) months from the date of the 2025," informed the company to stock exchanges.

Padam Cotton Yarns News

"The Board of Directors of the Company at its Meeting held on January 24, 2025 subject to approval of shareholders to be obtained, has resolved to amend Clause V (Capital Clause) of the Memorandum of Association of the Company. The Present Authorized Capital of the Company is Rs. 10,00,00,000/- (Rupees Ten Crores Only) divided into 1,00,00,000 (One Crore) Equity Shares of Rs. 10/- (Rupees Ten Only) each. The Company proposes to increase its authorized share capital to Rs. 13,00,00,000 (Rupees Thirteen Crores Only) to facilitate fund raising in future via issuance of equity shares," Padam Cotton Yarns stated in a regulatory filing.

Padam Cotton Yarns Share Price Target

"Padam Cotton Yarns stock price is bearish on the Daily charts with strong resistance at 192. A Daily close below support of 181 could lead to a target of 164 in the near term," commented A R Ramachandran, Independent Research Analyst.

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