Penny Stock Under Re 1 hits upper circuit: Announces game-changing 1:50 bonus issue with 10.5 per cent dividend yield; promoters forgo bonus entitlement, exclusive to public shareholders

The stock witnessed a surge, hitting the upper circuit limit on November 29, 2023, and achieving a fresh 52-week high of Rs 0.95.

The past week witnessed a historic surge in the Indian benchmark indices, culminating in the Nifty achieving an unprecedented milestone by soaring to a fresh all-time high and closing above the remarkable 20,250 mark for the first time in history. The market exuberance extended across sectors, with all the sectoral indices recording positive gains for the week, prominently led by the Nifty Energy sector.

Adding to the jubilation, Foreign Institutional Investors (FIIs) emerged as net buyers in the equity market for the sixth consecutive session on December 01, 2023. Notably, Domestic Institutional Investors (DIIs) also joined the bullish trend, amplifying the chorus of optimism among market participants.

Amidst this vibrant market landscape, a micro-cap penny stock trading below Rs 1 has emerged as a potential game-changer for investors – M Lakhamsi Industries Ltd (MLIL). The stock witnessed a surge, hitting the upper circuit limit on November 29, 2023, and achieving a fresh 52-week high of Rs 0.95.

MLIL, a public limited company, specializes in the trading of agro commodities, including peanuts, sesame seeds, spices, and various edible and non-edible vegetable oils. Additional products in their portfolio encompass chickpeas, raisins, wheat flour, oil cakes, maize, coarse grains, and cereals, with Mr. Sanjiv Sawla currently at the helm of the business.

A noteworthy development that piqued interest was the Board's consideration and recommendation of a bonus issue in the ratio of 1:50. This entails the issuance of 1 (One) New Bonus Equity Share for every 50 (Fifty) existing fully paid-up Equity Shares of Rs 10/- each to public shareholders, excluding promoters and the promoter group. The proposal is subject to approval by the members at the Extra-Ordinary General Meeting, as well as other necessary statutory and regulatory approvals. The move aligns with compliance requirements under rules 19(2)(b) and 19A of the SCRR, along with regulation 38 of the LODR Regulations, as Promoter(s) / promoter group shareholders willingly forgo their entitlement to equity shares.

Promoters currently command a substantial 75 per cent stake in the company, and the stock boasts an impressive dividend yield of 10.5 per cent – one of the highest for a stock priced below Rs 1. Trading at a book value of 0.08, with the book value standing at Rs 12.4, MLIL presents a compelling investment proposition.

The unique aspect of this penny stock, coupled with the surprising revelation that promoter group shareholders are relinquishing their entitlement to equity shares, sparks curiosity and highlights the dynamic nature of the market. Share your thoughts in the comment section – were you aware of this penny stock, and have you ever encountered a scenario where promoter group shareholders voluntarily forgo their entitlement to equity shares? The beauty of the market lies in discovering new developments and expanding our understanding of its intricacies.

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