Board of this penny stock approves 3:10 bonus shares: Do you own?

A small-cap company with a market valuation of ₹18.30 crore that operates in the power sector is Veer Energy & Infrastructure Ltd. The company is a top provider of renewable energy in India and has the expertise to offer services throughout the country. The company's Board of Directors has considered and authorized 3:10 bonus shares.

The company has said in a stock exchange filing that “Pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 and other applicable provisions, if any, we would like to inform you that the meeting of the Board of Directors of Veer Energy & Infrastructure Limited held today i.e. Thursday, October 13, 2022 at 629-A Gazdar House, 151 Floor, J.S.S. Marg, Near Kalbadevi Post Office, Mumbai- 400002, inter-alia has considered and approved the following businesses: 1. Increase in Authorized Share Capital from Rs. 15 crore to Rs. 20 crore and consequent Alteration in Memorandum of Association; 2. Issuance of Bonus equity shares in the ratio of 3:10 i.e. 3 fully paid up equity share for every 10 fully paid up equity shares held and fixing of record date for the purpose of Bonus Issue; 3. The Board has decided to convene the Extra Ordinary General Meeting (EGM) of the Company on Tuesday, 15th November, 2022 at 10.30 A.M. at 6, New Nandu Industrial Estate, Mahakali Caves Road, Andheri (E), Mumbai- 400093. 4. Appointed Mr. Vi jay Tiwari, proprietor of Vi jay S. Tiwari & Associates, Practicing Company Secretary, as the scrutinizer for remote e-voting in a fair and transparent manner.”

The shares of Veer Energy & Infrastructure Ltd closed on Friday at ₹15.90 apiece, down by 12.64% from the previous close of ₹18.20. In its last trading session, the stock recorded a total volume of 384,554 shares compared to the 20-Day average volume of 171,461 shares. The stock price climbed from ₹0.69 on January 16, 2004, to the current market price, representing an 18-year multibagger return of 2,204.35%. The stock has dropped 42.50% over the past five years while rising 74.15% over the past three years. 

The stock has gained by 15.89% over the last year, and on a year-to-date basis, it has appreciated by 3.72% in 2022. On the BSE, the stock had touched a 52-week-high of ₹20.50 on (04/10/2022) and a 52-week-low of ₹9.93 on (08/03/2022), indicating that at the current market price the stock is trading 22.43% below the high and 60.12% above the low. For the quarter that ended June 2022, the company recorded a promoter shareholding of 30.75%, FIIs holding of 0.39%, and a public shareholding of 68.86%.