Penny Stock: Pradhin Ltd, a micro-cap company formerly known as Bhagwandas Metals Ltd., has recently made headlines with a series of strategic announcements that promise significant rewards for its shareholders. As of the latest update from the NSE, Pradhin Ltd is gearing up for a potential 10:1 stock split, a 2:1 bonus share issue, and an interim dividend payout, all of which are set to enhance shareholder value and attract new investors.
Pradhin Ltd’s Strategic Moves: Stock Split, Bonus Shares, and Dividend
Upcoming Board Meeting and Stock Split Proposal
Pradhin Ltd has issued a notice indicating that its Board of Directors will convene on January 17, 2025, to deliberate on several significant matters. One of the key agenda items is a proposed 10:1 stock split of existing equity shares. This proposal requires shareholder approval via a postal ballot. If approved, the company will amend its Memorandum of Association to reflect this change, effectively making each existing share worth one-tenth of its current value.
- Current Market Price (CMP): ₹24.93
- Post-Split Price: ₹2.49
- Record Date: To be determined
The stock split aims to increase the liquidity of Pradhin Ltd’s shares, making them more accessible to a broader base of investors. By reducing the share price, the company hopes to attract retail investors who may have previously found the stock price prohibitive.
Penny Stock Bonus Share Issue and Interim Dividend
In addition to the stock split, Pradhin Ltd is considering a 2:1 bonus share issue for eligible shareholders. This issuance would be facilitated by capitalizing existing securities premium, subject to shareholder approval.
- Bonus Share Ratio: 2:1
- Eligibility: Shareholders as per the record date
Furthermore, the board may propose an interim dividend of up to 100% for the current fiscal year. The exact record date for the dividend will be announced at a later stage. These combined actions could result in a “Triple Bonanza” for investors, offering a combination of stock split benefits, additional bonus shares, and a substantial dividend payout.
Company Background and Transformation
Pradhin Ltd, incorporated in 1982, has undergone a significant transformation from its roots in the steel industry to becoming a prominent player in the dairy products sector. In 2018, an open offer led to a change in management, resulting in new directors and the resignation of the executive chairman. This transition marked the company’s rebranding to Pradhin Ltd and a strategic shift towards producing, marketing, and trading a diverse range of dairy products, including Pure Ghee, Skimmed Milk Powder, White Butter, Yellow Butter, and Dairy Whitener.
Market Performance and Investor Interest
As of the latest closing on January 3, Pradhin Ltd holds a market capitalization of ₹59.79 crore. On Monday, the company’s shares surged by 5%, hitting an upper circuit of ₹26.17 per share from the previous closing price of ₹24.93. This spike in price was accompanied by a substantial increase in trading volume, which more than tripled on the BSE, and the stock rose by 12.22% from its 52-week low of ₹23.32 per share. This performance highlights the market’s positive response to the company’s upcoming corporate actions and its impressive historical growth.
Historical Growth and Future Potential
Pradhin Ltd has demonstrated exceptional growth over the past decade, delivering a 5879.47% increase in share value, far outperforming the Sensex’s 184.08% gain over the same period. In the last two years alone, the stock has rallied by 1503.73%, showcasing its potential as a multibagger stock. Despite a slight correction of 17.97% in the last three months and a minor dip of 4.98% in the past month, the overall long-term growth trajectory remains robust.
Why Pradhin Ltd is a Stock to Watch
Pradhin Ltd’s strategic initiatives—stock split, bonus shares, and a potential interim dividend—are set to create multiple layers of value for investors. The stock split will make shares more affordable and increase liquidity, while the bonus shares will reward existing shareholders with additional equity. The proposed interim dividend could provide immediate returns, enhancing the overall attractiveness of the stock.
- Affordability: Lower share price post-split makes it accessible to a larger investor base.
- Increased Liquidity: More shares in circulation can lead to higher trading volumes.
- Additional Returns: Bonus shares and dividends offer both short-term and long-term benefits.
Conclusion
Pradhin Ltd is poised for a significant year ahead with its upcoming stock split, bonus share issue, and potential dividend announcement. These strategic moves, combined with its impressive historical performance, make it a compelling option for investors seeking high-growth opportunities in the small-cap segment. As the company continues to innovate and expand its footprint in the dairy products market, investors should keep a close watch on Pradhin Ltd’s developments to capitalize on its promising growth trajectory.
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