Sinclairs Hotels share price: After surging 100% this year, the small-cap stock has announced a 1:1 bonus issue.
“The Board of Directors of the Company has recommended the issuance of fully paid bonus shares of Rs 2 per share in the ratio of 1:1 held by the members of the Company as on the record date,” the company said in the filing.
A record date for this will be fixed shortly by the Committee. Issuance of bonuses must be approved by shareholders at the company’s Extraordinary General Meeting (EGM).
A general shareholders’ meeting will be convened on January 18 to receive approval. The proposed bonus issuance is expected to be completed within two months of board approval, on or before February 21.
Companies issue bonus shares to shareholders to increase stock liquidity, lower stock prices, and provide investors with reasonable prices.
Bonus shares are paid in full as additional shares issued by the company to existing shareholders. When a company issues bonus shares, shareholders do not have to incur additional costs to obtain them. The number of bonus shares you receive depends on how many shares of the company you already own.
Anyone who owns shares of the Company prior to the record date determined by the Company is entitled to receive additional shares. Once allocated, bonus shares have pari-passu ranking in all respects and have the same rights as existing shares. You are entitled to participate fully in recommended dividends and other corporate activities.
“We are committed to maximizing shareholder value and following our recent share repurchase, we are once again rewarding our shareholders through the issuance of bonus shares,” said Chairman Navin Suchanti.
Sinclairs Hotels also recently bought 15,20,000 shares of Rs 2 each at a price of Rs 200 per share, equivalent to Rs 30 crore. The share repurchase was completed on October 23 this year.
On Friday, the company’s shares were trading 1.17 per cent down at Rs 206.8 on the NSE. This year, stock prices have almost doubled compared to the same period last year.
