Pradhin share price: Shares of micro cap company Pradhin will be in focus in the coming trading session. Actually, the company is preparing to issue dividend, stock split and bonus shares to its shareholders. The company’s board meeting will be held on January 17, 2025, in which the decision on these proposals will be taken. The Iron and Steel Products firm has given this information in its exchange filing. Amid the news, the company’s shares saw a rise of 4.33 percent on Friday. This stock closed at Rs 26.01 on BSE. The market cap of the company is Rs 59.79 crore.
The company is going to announce cash rewards for its shareholders for the first time in more than a decade. The company last declared a dividend in 2013. This time, the company said it would consider an interim dividend of up to 100 percent.
The micro cap firm will also consider issuing bonus shares for the first time. Under this, a decision will be taken on the proposal to issue bonus shares in the ratio of 2:1 to the eligible equity shareholders of the company. If this decision is taken, shareholders will be issued 2 bonus equity shares for every one share held.
The company said in an exchange filing that the company will also take a decision on the stock split proposal in the meeting. Under this, shares with face value of ₹ 10 per share will be split into equity shares with face value of ₹ 1 per share. The proposal is subject to the approval of the shareholders of the company, which will be obtained through postal ballot.
What is Bonus and Stock Split?
Bonus shares are given free of cost by a company to its existing shareholders. It is generally given to increase the earnings per share of the company, increase the capital base and reduce the free reserves.
Furthermore, a stock split is typically undertaken by a company to increase its outstanding shares. Usually, when the shares of a company become very expensive, small investors are not able to invest in those shares. In such a situation the company splits its shares. The company resorts to stock split to attract small investors and increase demand in the market.
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