Multibagger in just 6 months: Board announces bonus shares for the first time ever; scrip jumps over 9 per cent!

The stock gave multibagger returns of 130 per cent in just 6 months whereas BSE Sensex Index is up by 9.46 per cent.

Olatech Solutions Ltd informed that the Board of Directors of the company have approved bonus shares in the ratio of 17:20 i.e., 17 bonus equity shares of Rs 10 each for every 20 fully paid-up equity shares of Rs 10 each held as on the record date. The Bonus issue will be implemented within 2 months from the date of the Board Meeting i.e., by December 07, 2023.

Pre-Bonus issue paid-up share capital: Rs 2,34,00,000 divided into 23,40,000 equity shares of the face value of Rs 10 each.

Post Bonus Issue: Rs 4,32,90,000 divided into 43,29,000 equity shares of face value of Rs 10 each.

Olatech Solutions Limited is engaged in the business of data centre, enterprise, telecom and IT software solutions in the operations support system and business support system (OSS and BSS) segment. The company's software solutions are offered under the registered trademark "Epiphany". The company has a market cap of over Rs 40 crore and reported amazing numbers in its half-yearly results and annual results.

On Monday, shares of Olatech Solutions gained 9.57 per cent to an intraday high of Rs 186 per share from its previous closing of Rs 169.75. The shares of the company saw a spurt in volume by more than 2 times on BSE. The stock falls under the SME segment with a lot size of 2,000 shares.

The shares of the company have an ROE of 39.6 per cent and an ROCE of 53 per cent. The stock gave multibagger returns of 130 per cent in just 6 months whereas BSE Sensex Index is up by 9.46 per cent. Investors should keep an eye on this micro-cap stock.

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