Penny stock under Rs 1: Board announces consolidation of equity shares!
The stock is trading at 0.61 times its book value and it is up by 48 per cent from its 52-week low of Rs 0.44 per share.
7NR Retail Ltd informed that the Board of Directors of the company approved the stock consolidation of 10 (Ten) equity shares of the company having a face value of Rs 1 (Rupee one only) each into 1 (One) equity share having face value of Rs 10 (Rupees ten only) each. The company fixed the record date as Friday, January 05, 2023.
What is consolidation of shares?
Remember collecting marbles as a kid? Imagine finding a box overflowing with dusty, chipped ones. You meticulously combine them, crafting fewer, dazzling marbles. Suddenly, your collection feels more valuable, more worthy of admiration. That's the essence of a reverse stock split. A company gathers its scattered shares, merges them into fewer, pricier ones, and hopes to spark investor interest. This transformation, of course, is transparent, with shareholders informed every step of the way.
About the company - Founded in 2012, 7NR Retail Limited is an Indian apparel store specializing in ready-made garments, suiting and shirting fabrics, kids' clothes, uniforms, and western-style apparel under its brand, catering exclusively to customers within India. The company has a market cap of Rs 18.2 crore. As of September 2023, the promoters own a 15.61 per cent stake and the rest of the stake i.e., 84.39 per cent is owned by the general public.
In its Quarterly Results (Q2FY24), the company reported net sales of Rs 2.35 crore and a net loss of Rs 0.48 crore. According to the annual results, the net sales increased by 99 per cent to Rs 47.68 crore while the net profit decreased by 69 per cent to Rs 0.24 crore in FY23 over FY22.
Today, the shares of 7NR Retail Limited gained 1.56 per cent to Rs 0.65 per share from its previous closing of Rs 0.64 per share. The stock is trading at 0.61 times its book value and it is up by 48 per cent from its 52-week low of Rs 0.44 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
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