Here is the good news for the shareholders of Muthoot Capital
, the company’s board of directors have decided to issue the bonus shares in the ratio of 1:10.
The bonus issue is out of company’s free reserves created out of profits or share premium account. As per the pre-bonus issue data, the company’s share capital contains 1,24,72,575 shares and after the bonus issue it will contain 1,37,19,833.
The company is going to utilise Rs 1,24,72,580 from its free reserves to implement the bonus issue. June 18, 2017 is the estimated date by which bonus issue shares would be created or dispatched.
Generally, companies take the route of bonus issue when they are short of cash since the shareholders may sell the bonus shares and the company’s liquidity needs may get fulfilled.
After the bonus issue, the company’s issued share capital increases which makes investors in the market to perceive the company as a big one and lures them to invest in it.
Muthoot Capital Services Limited’s stock invited strong volume in Tuesday’s trade after the bonus issue news came out. The stock witnessed sharp surge touching intraday high of Rs 423.40 per share up by 5.8%. On NSE, the stock’s traded volume stands at 9,05,974 and the total traded value stands at Rs 36.93 cr as of 14:45 hours on Tuesday.
Muthoot Capital Services Ltd is currently trading at Rs 406, up by Rs 6.1 or 1.53% from its previous closing of Rs 399.9 on the BSE.
The scrip opened at Rs 405 and has touched a high and low of Rs 423.4 and Rs 377.1 respectively. So far 1062881(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 498.78 crore.
The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 429 on 12-Apr-2017 and a 52 week low of Rs 154 on 18-Apr-2016. Last one week high and low of the scrip stood at Rs 429 and Rs 314 respectively.
The promoters holding in the company stood at 74.93 % while Institutions and Non-Institutions held 0.06 % and 25.02 % respectively.
The stock is currently trading above its 50 DMA.