Amid drastic volatility in the stock markets where even the number of companies coming up with their IPOs has dried up as compared to the previous year, it seems making easy money has now become tougher for stock market participants. However, during times like these, there are other corporate events where investors can try their hands. One such corporate event is the bonus issue of shares. Sword Edge Commercial Limited is coming about with its bonus issue. So let us dive deep into the details about the company and the bonus issue.
About the company
Sword Edge Commercial Limited was incorporated in 1985 and is a trading company. It offers traders, merchants, importers, exporters, distributors and dealers of consumer goods such as beverages, edible oils and fat. It is also involved in the trading of electrical goods, metals, chemicals, industrial, and other components. The company’s registered office is situated in Mumbai.
The company’s revenues have de-grown at a CAGR of 20% over the past 3 years. The company’s net profit has declined at a CAGR of 237% over the same tenure. The company’s return on equity stood at 1.45% as of March 2021. The company’s debt to equity ratio stood at 0.61 at the end of March 2021. The company’s return on capital employed stood at 0.83% at the end of March 2021. The company’s current market capitalization stands at ₹18.68 crores. The company has a cash balance of ₹0.02 crore on its book.
About the bonus issue
Following are the details about the bonus issue announced by the company:
- The board of directors of Sword Edge Commercials Limited approved the issuance of fully-paid up bonus shares in its meeting held in December 2021 in the ratio of 1:1.
- Shareholders of the company will receive one additional share for every share already held by them as on the record date.
- The bonus issue of shares will be subject to shareholder’s approval through postal ballot.
- The bonus equity shares will be issued out of share premium of the company available as on 31 March 2021.
- The pre-bonus issue paid up equity share capital is ₹10.86 crore, consisting of 10.86 crore equity shares of ₹1 each, while the post bonus issue paid up equity capital will be ₹21.72 crores, consisting of 21.72 crore equity shares of ₹1 each.
- The record date for the bonus issue is February 4, 2022.
These were the details about the company and the bonus issue. Investors should carefully assess the corporate event before trying to play the corporate event.