Small-cap stock Sikko Industries shares have been in a sharp uptrend for three consecutive sessions following the company’s announcement of a stock split and bonus share issue.
Sikko Industries’ share price rallied 18.5% in intraday trade on Thursday, October 23. With this, the small-cap stock has risen 27% in three sessions. The company’s board approved the corporate actions at a meeting held on Saturday, October 18.
The small-cap stock hit a 52-week high of ₹122.70 on the NSE today. As of 11.45 am, Sikko Industries’ share price was trading 16.4% higher at ₹120.48.
Sikko Industries stock split, bonus issue details
The company’s board approved the sub-division of one equity share of face value of ₹10 each fully paid-up into 10 equity shares of face value of ₹1 each fully paid-up.
Additionally, the board also gave its go-ahead for the issue of bonus equity shares in the ratio of 1:1, i.e., one bonus equity share of ₹1 each for every one equity share of ₹1 each fully paid up held by the shareholders of the Company as on the record date.
The corporate actions are subject to the approval of the shareholders, the company added.
The company is yet to announce the record date for the corporate actions.
Impact of Sikko Industries’ corporate action
Any shareholder holding 100 shares of small-cap stock will end up owning 2,000 shares. Here’s how:
If an investor holds 100 shares of Sikko Industries ahead of the record date, then with the 1:10 stock split coming in place, he or she will end up with 1,000 shares of the company.
After this, the bonus issue of 1:1 will come into play. So, with the investor now owning 1,000 shares, he or she will receive another 1000 shares, taking the total holding to 2,000 shares.
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