There are many smart ways to make some decent bucks from the stock markets by taking calculated and sensible risk. These ways includes many corporate actions such as stock splits, bonus issues, demergers, acquisitions, right issues, share buybacks, and the rest. Initial Public Offerings (IPOs) with good business fundamentals and reasonable valuations are attractive opportunities, but these corporate actions are underrated ones. So to take advantage of one such corporate action, let us discuss the bonus issue announced by MK Exim India Limited in detail.
About MK Exim India Limited
MK Exim India Limited is involved in the business of manufacturing textiles and fabrics. The company has lately entered in the distribution of cosmetic products. The company was incorporated in 1992 with its headquarters in Jaipur, Rajasthan. Mr. Murli Wadhumal Dialani is the chairman of the company. The company is a government recognized ‘Export House’ and is registered with the India Export Council. The company’s target market is the USA, Middle East, and West African countries. The company’s market capitalization stands at ₹320.25 crore. The company’s revenues have grown at a CAGR of 13.22% over the last five years, while net profits grew at a CAGR of 30.92% over the same tenure. The company’s return on capital employed stood at 29.25% for FY21. The company’s debt/equity ratio stood at 0.07 as of March 2021. The company has 6.87 crore cash on its books. The promoter holding in the company stands at 41.90%.
MK Exim India Limited Bonus Issue
Following are the details about MK Exim India Limited Bonus issue:
On December 21, 2021, the company’s board of directors approved and recommended a 2:1 bonus issue, which means that for every one share that a shareholder owns, he/she will get two additional shares.
The record date to be eligible for the bonus shares is 09 February, 2022.
The company will issue bonus shares to increase liquidity in the trading of shares and make them more affordable for investors.
The company’s board of directors have also approved increasing the share capital of the company from ₹10 crore to ₹30 crore.
So this was the detailed discussion of the MK Exim India bonus issue. Investors can take advantage of situation like these by keeping in mind the record date for the corporate event and the company’s underlying business fundamentals. After all, smart money follows smart people!