Standard Capital Markets Rockets: 154% YTD Returns, Bonus Issue, and 10:1 Stock Split Unveiled!

A high-performing stock, delivering an impressive 154% Year-to-date (YTD) return, has recently announced a bonus issue and a stock split, as per the company's latest exchange filing. Standard Capital Markets' shares have experienced a significant surge, resulting in a remarkable 751% increase in investor wealth over the past 365 days, as reported by the Bombay Stock Exchange (BSE).

Concerning the Bonus Issue, the company revealed in a regulatory filing that its Board of Directors, in a meeting on Friday, November 24, 2023, approved a bonus issuance to shareholders in the ratio of 2:1. This means that for every 1 equity shareholder, they will receive 2 Equity Shares of Rs 1 each. The record date for this bonus issue is yet to be determined.

The company's statement on the Bonus Issue states, "Bonus Issue of Equity Shares in the ratio of 2:1, i.e., Each shareholder holding one Equity Share of ₹1/- each will be entitled to receive two additional Equity Shares of ₹1/- each, pending approval by the Company's members through an Extraordinary General Meeting. The Record Date for this allocation will be determined by the Board and communicated to the exchange.

Moreover, the Board of Directors has given the green light for a 10:1 stock split. Following the split, the current face value of the stock, which is Rs 10, will be effectively reduced to Rs 1. Importantly, while the number of outstanding shares will increase post the stock split, there will be no impact on the company's total market capitalization, as the share price will adjust accordingly.