Penny stock under Rs 10 hit upper circuit as Board announces 5:1 stock split and rights issue worth Rs 49 crore!

Penny stock under Rs 10 hit upper circuit as Board announces 5:1 stock split and rights issue worth Rs 49 crore!

Kiran Shroff

The stock is down by 55 per cent from its 52-week high of Rs 18.86 while the scrip is up by 42.2 per cent from its 52-week low of Rs 5.97 per share.

The Board of Directors of Mayukh Dealtrade Limited met on August 30, 2024, at their registered office in Mumbai. They discussed and approved proposals to subdivide each existing equity share from a face value of Rs 5 to 5 equity shares having a face value of Re 1 each.

Additionally, The Board of Directors has approved a proposal to raise up to Rs 49 crore through a rights issue to eligible shareholders. They've authorized the Managing Director and CFO to appoint consultants and begin the rights issue process. The Board or the Rights Issue Committee will discuss and decide on further approvals and requirements in future meetings. The Board has also established a Rights Issue Committee to determine the terms and conditions of the issue, including the final issue size, rights entitlement ratio, issue price, record date, timing, draft letter of offer, intermediaries, share allotment and other related matters.

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About the Company

Mayukh Dealtrade Ltd, established in 1980, manufactures and sells burners. The company's product line includes camphor sticks and various aroma burners, such as Mantra Aroma Burner, Brilliance with Timer, and Navkar Mantra Aroma Burner. In July 2021, they launched the Brilliance with Timer aroma burner and expanded their business by acquiring a 60 per cent stake in Mayukh Medi Care Private Limited, a subsidiary focused on medical and general stores.

On Friday, shares of Mayukh Dealtrade Ltd hit 5 per cent to Rs 8.49 per share from its previous closing of Rs 8.09 with an intraday high of Rs 8.49 and an intraday low of Rs 8.10. The stock is down by 55 per cent from its 52-week high of Rs 18.86 while the scrip is up by 42.2 per cent from its 52-week low of Rs 5.97 per share. The company has a market cap of Rs 20.28 crore and investors should keep an eye on this penny stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

Also Read: 5:1 stock split: Penny stock under Rs 5 locked in upper circuit as company’s mining subsidiary secures total export orders worth Rs 661 crore

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