Penny stock under Rs 1: The micro-cap company announces rights issue after bonus shares & stock split; scrip hit 10 per cent upper circuit!

Shares of the company gave 55 per cent returns in just six months.

The main Indian indices ended the day higher on Friday. The BSE Sensex was up 0.50 per cent at 66,598.91. In terms of sector performance, the indices were trading higher, with the Top Gainers being the BSE Realty Index and the BSE Capital Goods Index.

On Friday, shares of Sun Retail Ltd were locked in a 10 per cent upper circuit to Rs 0.66 per share from its previous closing of Rs 0.60, being one of the top gainers on BSE. The stock has a 52-week high of Rs 0.94 and a 52-week low of Rs 0.41. The shares of the company saw a spurt in volume by more than 2.26 times on BSE.

Sun Retail informed that the company considered and approved to increase in the authorized share capital of the company up to Rs 62.50 crore and considered and approved the fundraising via issuance of equity shares of the company through Rights Issue.

Issuance of up to 46,55,04,000 Equity Shares of the company having a face value of Rs 1 each by way of rights issue in the ratio of 3 equity shares for every 1 fully paid-up equity shares held by existing equity shareholder of the company as on record date (yet to be notified).

Sun Retail Limited produces and processes edible oils and oil seeds. The company offers cotton seed, ground nut, and sunflower oil products. Sun Retail serves clients in India. The stock is trading at 0.67 times its book value.

Sun Retail announced bonus shares in the ratio of 3:5 and a stock split in the ratio of 10:1 for the fiscal year 2021-2022 as of the record date of Friday, April 13, 2021.

Shares of the company gave 55 per cent returns in just six months. Investors should keep a close watch on this micro-cap penny stock.