Amid a slew of initial public offerings (IPOs), many companies are coming up with bonus issue of equity shares, especially the small ones. These are recently incorporated growing companies which have a lot of potential, obviously, with a lot more risk! One such company that is coming up with a bonus issue of equity shares is Parshva Enterprises Limited. So let us discuss in detail, about the company’s business, and the details about the bonus issue.
About the company
Parshva Enterprises Limited was incorporated on July 27, 2017. The company deals in a variety of diamonds including both rough and polished. The company also sells diamonds of multiple categories based on different shapes, size, cut, and color. The company deals in only natural diamonds which are free from any treatment or enhancement. Besides, the company is also engaged in the gold jewellery business, and sells chains, bangles, necklace, pendles, bracelet, earrings, and other jewellery studded or non-studded with pearls, diamonds, and other precious stones. The company also has a real estate business where it is engaged in investments in real estate properties in Mumbai with a purpose of selling them for trading gains.
The company’s revenue from operations have grown at a CAGR of 29.34% over the last three years, while net profits grew at a CAGR of 62.61% over the same tenure. The company’s return on capital employed stood at 3.31% as of March 2021. The company had a debt/equity ratio of 0.15 as of March 2021. The company’s current debt stands at ₹1.06 crore. The company’s current market capitalization stands at ₹103 crore. Promoters own 73.09% stake in the company.
Parshva Enterprises Limited bonus issue
Following are the details about Parshva Enterprises Limited bonus issue:
- In its meeting held on 17th December 2021, the board of directors of Parshva Enterprises Limited approved the issue of fully paid bonus shares in the ratio of 205:100.
- This means that shareholders of the company will get 205 fully paid up equity shares for every 100 shares held in the company as on the record date.
- The record date to be eligible to receive the bonus shares is 4th February 2022.
- The bonus issue is subject to the approval of shareholders.
These were the details about the company’s underlying business and the bonus issue of its shares. Investors should do their own due diligence before playing this corporate action!