Penny stock below ₹20: Board approves allotment of bonus shares in 1:2 ratio

Penny stock below ₹20: Shares of SBC Exports, a garments and apparel company, were in focus on Tuesday, March 11, after its board approved issuing bonus shares in the ratio of 1:2 to the eligible shareholders of the company.

“We wish to inform you that the Board of Directors of the Company, in its meeting held today, i.e., 11th March 2025, has inter alia, approved the allotment of 158,730,000 Bonus Equity Shares of Re. 1/- each in the ratio of 1:2 (i.e., a bonus issue of 1 (one) Equity Share of Re. 1/- each for every 2 (two) Equity Shares of Re. 1/- each) held by the members as on the record date fixed by the Company, i.e., 10th March 2025,” the company said in a filing today.

Following the bonus share allotment, the paid-up equity share capital of the Company stands increased to Rs. 47.62 crore, consisting of 47,61,90,000 equity shares of ₹1 each.

As part of the aforementioned allotment, the bonus equity shares representing fractional entitlements of eligible members have been consolidated and allotted to Radha Kumari, the Independent Director of the company, who has been appointed by the Board as a trustee. The trustee will sell these shares at the current market price as soon as possible and distribute the net proceeds, after deducting the associated costs and expenses, among the eligible members in proportion to their respective fractional entitlements.

SBC Exports Share Price Trend

Amid weakness in the Indian stock market, penny stock SBC Exports declined nearly 15% in intraday trade on Tuesday. The stock lost as much as 14.71% to hit the day's low of ₹12. The stock, with a market capitalisation of ₹600 crore, snapped its two-day winning run following today's fall.

The stock has been in a base building mode over the last year, with the stock shedding 13% during this period.

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