Bonus shares 2024: This small-cap stock surges over 7% as board recommends bonus shares in 1:1 ratio

Bonus shares 2024: Shares of Kothari Products surged over 7 per cent in intra-day trade on Monday, December 30 following the board's approval to bonus share issue in the ratio of 1:1. This was the second straight day of gains for Kothari Products stock, with the scrip rallying 12 per cent during this period.

In an exchange filing on Friday, December 27, Kothari Products informed that its Board of Directors, at its board meeting held today, recommended the issue of bonus shares in the ratio of 1:1, subject to the approval of the members through postal ballot.

This means that every shareholder who owns one stock of the company as of the record date will receive another stock at no additional cost. However, the company has not yet announced the record date for the bonus share issue.

The company's board also approved increasing the authorized share capital from Rs. 31,50,00,000 to ₹61,50,00,000, subject to the approval of the members through postal ballot.

Stock Price Trend

Following this development, Kothari Products share price surged as much as 7.37 per cent to the day's high of ₹209.70. The stock opened at ₹199.15 as against its previous close of ₹195.30.

The stock hit its 52-week high of ₹227.35 last week, on December 26, while its 52-week low stands at ₹111.15, which it touched on March 13, 2024.

So far this month, the stock has rallied 30 per cent, while it has rallied 50 per cent in the last six months. On a one-year basis, Kothari Products share price is up 61 per cent.

Kothari Products, engaged in sectors such as real estate, investments and international trading of exports and imports, is a small-cap company with a market capitalisation of ₹600 crore.

Kothari Products Bonus Shares History

This is the third bonus share action by Kothari Products. The small-cap firm had first approved bonus shares in the ratio of 2:1 in March 2014. Meanwhile, it announced a second bonus share issue in 2016 in a 1:2 ratio, suggests data from Trendlyne.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.