1:8 Bonus Shares & 5:1 Stock Split: Debt-Free Multibagger Penny Stock Under Rs 30 In Focus As Company Make Strategic Investment In Damask Jewellers Pvt Ltd
The stock gave multibagger returns of 167 per cent from its 52-week low of Rs 9.50 per share.
Sellwin Traders Limited has announced that its Audit Committee has approved a strategic investment in Damask Jewellers Private Limited. The company will acquire a majority stake of 51 per cent in Damask Jewellers by purchasing or subscribing to its equity shares. This investment aligns with Sellwin Traders' future business plans and aims to expand its presence in the jewellery industry.
Damask Jewellers Private Limited is a newly incorporated company with an authorized share capital of 1,00,000 and a paid-up share capital of 1,00,000. As of now, the company has not generated any revenue. The acquisition of Damask Jewellers will not involve any related party transactions, and there are no promoter or group company interests in the target entity. The investment is being made at an "arm's length" price of Rs 10 per share, totalling Rs 51,000 for 5100 equity shares. This acquisition will give Sellwin Traders a controlling interest of 51 per cent in Damask Jewellers.
Additionally, the Board of Directors has approved a sub-division of 1 fully paid-up equity share of Rs 10 each into 5 fully paid-up equity shares of Rs 2 each. Additionally, the Board has authorized the issuance of bonus shares to existing shareholders at a ratio of 1:8, using free reserves and a security premium account. The record date for the stock split and bonus shares has not yet been determined and will be announced at a later time.
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Earlier, the company has been actively expanding its business through strategic partnerships and acquisitions. A recent milestone is the signing of a MoU with Secorbit FZCO, UAE, to develop a blockchain-based tokenization platform valued at USD 2 million. This platform will enable the tokenization of various assets, offering enhanced security, scalability, and seamless integration with existing financial and blockchain ecosystems. Additionally, Sellwin has entered a business arrangement with SDF Productions Pvt Ltd, an agri-export company. This partnership is expected to generate revenue of over Rs 30 crore with healthy margins of 35-40 per cent. Sellwin will supply agro products to SDF Productions, which will then distribute them domestically and internationally. This strategic investment aims to leverage market growth, enhance supply chain integration, and boost Sellwin's revenue.
The company has a market cap of Rs 48.26 crore and as of June 2024, the company is debt-free. The stock is trading at 0.75 times its book value and debtor days have improved from 230 to 126 days. The stock gave multibagger returns of 167 per cent from its 52-week low of Rs 9.50 per share.
Disclaimer: The article is for informational purposes only and not investment advice.