Bonus 1:1 and stock split in a ratio of 1:10: Add this small-cap multibagger to your watchlist!
Bonus share is expected to be credited within two months from the date of Board Approval, specifically by March 23, 2024.
The NSE benchmark Nifty 50 commenced trading at 21,716.70 levels and subsequently reached an intraday high of 21,750.25 on Tuesday, buoyed by positive global cues. Just as optimism seemed to be returning to the market, a sharp sell-off ensued, causing the index to plummet, marking its steepest single-day decline in recent times. By day's end, it closed below the 21,250 mark, registering a decline of 1.54 per cent.
Notably, market participants eagerly awaited the unfolding of the Cupid Ltd board meeting, anticipating bonus and split announcements. Cupid had declared a bonus issue of shares in the ratio of 1:1, translating to 1 additional share for every 1 share held. Bonus shares were expected to be credited within two months from the date of Board Approval, specifically by March 23, 2024. Furthermore, the company revealed a stock split in the ratio of 1:10, where each share with a face value of Rs 10/- would be split into 10 shares with a face value of Re 1/- each, providing a dual benefit for investors.
Additional key details from the board meeting include:
- Appointment of Mr. Ajay Halwasiya as an Additional Director and Executive Director.
- Proposal to increase the authorized share capital from Rs 16 crores to Rs 50 crores, pending shareholder approval.
- Plans to issue 22,00,000 convertible warrants on a preferential basis to 6 investors at an issue price of Rs 1,750 per warrant.
- Each warrant can be converted into 1 equity share of Rs 10/- each, totaling 22,00,000 shares upon conversion.
- The issue price for warrants incorporates a face value of Rs 10/- and a premium of Rs 1,740/- per share.
- Proposal to increase borrowing limits under Section 180(1)(c) of the Companies Act to Rs 1,000 crores, subject to shareholder approval.
- Appointment of M/s CRISIL Ltd as the monitoring agency for the preferential issue of warrants.
- An Extraordinary General Meeting (EGM) scheduled for Feb 21, 2024, for shareholder approval of these proposals.
This Small-Cap stock has demonstrated remarkable multibagger returns, surging by 591.16 per cent in the past year. Consequently, it is advisable to monitor this stock closely for potential opportunities.
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