1:2 Bonus Share: Multibagger Penny Stock Below Rs 35 To Keep Under Radar As Board Is Likely To Announce Rights Issue

The stock is up by 81.2 per cent from its 52-week low of Rs 17.32 per share and gave multibagger returns of 3,730 per cent in 5 years.

On Monday, shares of SBC Exports Ltd plunged 3.33 per cent from their previous closing of Rs 32.46 per share to Rs 31.38 per share with an intraday high of Rs 32.73 and an intraday low of Rs 31.19.

SBC Exports Limited informed that a meeting of the Board of Directors of the company will scheduled to be held on Tuesday, October 22, 2024 at 4:00 P.M. at the Corporate office of the Company i.e. 49/95 Site-IV, Sahibabad Industrial Area Ghaziabad, Uttar Pradesh - 201010 to transact, inter-alia, consider:

1. The unaudited financial results (standalone and consolidated) for the quarter and half year ended September 30, 2024.
2. Fundraising by way of rights issue of equity shares of the company and for matters incidental thereto.
3. Any other item with the permission of the chairman

Additionally, the company was awarded a work order, totalling Rs 47,38,06,800, from the Directorate of Vocational Education & Training, Government of Maharashtra. This order is for the provision of manpower and related services in Pune and Mumbai. The work orders include specific terms and conditions that SBC Exports Limited must adhere to. These conditions cover various aspects of the contract, including the requirement to provide immediate alternative arrangements for absent team members, the forfeiture of a security deposit in case of non-compliance, payment terms and penalties for unsatisfactory services. Additionally, SBC Exports Limited is required to execute a contract agreement and pay a security deposit. The orders are domestic in nature and have a duration of three years.

Furthermore, the shares of the company ex-traded bonus shares in the ratio 1:2 i.e., 1 equity share for every 2 equity shares held by the existing equity shareholder of the company. The ex-record date was January 19, 2024. Pre-Bonus Issue Paid-up Share Capital – 21,16,40,000 Post Bonus Issue Paid-up Share Capital – 31,74,60,000.

SBC Exports Ltd was incorporated in 2011 with a market cap of over Rs 990 crore. It is engaged in the trading & manufacturing of garments, manpower supply services and tour operator services. Currently, the company has 70 distributors in India and receives an average of 75 new projects every year. 

The net sales increased by 24 per cent to Rs 65.72 crore and net profit increased by 16 per cent to Rs 5.32 crore in Q1FY25 compared to Q1FY24. The net sales increased by 7 per cent to Rs 209.41 crore and net profit increased by 36.71 per cent to Rs 9.44 crore in FY24 over FY23. The stock is up by 81.2 per cent from its 52-week low of Rs 17.32 per share and gave multibagger returns of 3,730 per cent in 5 years. 

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