Penny stock SRU Steels Ltd declares 1:2 bonus issue, scrip trading 110% above 52-week-low

SRU Steels Ltd., a small-cap company, closed today with a market valuation of Rs. 24.97 Cr. The company's sole line of business is trading in different kinds of iron and steel. The company currently deals in a variety of steel products and sells them on a commission basis.

The Board of Directors of the company subject to the approval of shareholders of the company has approved the issue of 1 (one) bonus share of the company for every 2 (two) fully paid up equity share each. 

“In this regard, we further wish to inform that pursuant to Regulation 42 of the Listing Regulations, the Company has fixed Wednesday, May 03, 2023, as the record date (“Record Date”) for the purpose of ascertaining the eligibility for receipt of equity shares upon issue of Bonus Shares,” said the Board of Directors of SRU Steels in a stock exchange filing.

The company recorded a standalone net income of ₹3.55 Cr during the quarter ended December 2022 as compared to ₹3.19 Cr recorded during the quarter ended December 2021. The company's net expenses reached ₹3.34 Cr as against ₹3.10 Cr and its EBIT stood at ₹0.22 Cr during Q3FY23 compared to ₹0.09 Cr during Q3FY22. SRU Steels said its net profit reached ₹0.10 Cr as against ₹0.01 Cr during the same quarter of FY22 and its EPS stood at ₹0.13 during Q3FY23 compared to ₹0.01 during Q3FY22. The company is yet to declare its Q4FY23 earnings.

The shares of SRU Steels Ltd made a fresh 52-wee-high of ₹33.00 during the afternoon deals and then closed today on the BSE at ₹31.25 apiece level, down by 2.56% from the previous close of ₹32.07. The stock recorded a total traded volume of 1,77,097 shares and a deliverable volume of 100.00%. The stock had touched a 52-week-low of ₹14.85 on (23/02/2023), indicating that after touching a fresh 52-week-high today, SRU Steels stock was seen trading 110.43% above the 1 year low. 

During the quarter ended March 2023 or Q4FY23, the company recorded a promoter shareholding of 31.58% and a public stake of 68.42%.