IFL Enterprises Ltd, is a company involved in the business of trading in goods like fabric and related products. In addition, it is involved in selling shares and securities within permissible limits prescribed by the regulators.
The company has a market capitalization of ₹ 281 crores and its shares are currently trading at ₹ 152.95 apiece. However, they used to trade at ₹ 14.70 levels a year ago. This means that the shares have given multibagger returns of 940.48%. If an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 10.40 lakh today!
The board of IFL Enterprises has approved a stock split or sub-division of the company’s equity shares of the face value of ₹ 10 each into ten equity shares of the face value of ₹ 1 each (1:10), subject to the approval of the shareholders and other regulatory approvals.
It has also approved the issuance of bonus shares in the proportion of one share for every four equity shares of ₹ 1 each (1:4) held by the shareholders of the company as on the record date. Free reserves of ₹ 4,54,80,860 are required for implementing the bonus issue and the company had 6,76,27,676 in its free reserves as of December 31, 2022.
The record date for both corporate actions shall be decided in due course. However, they are expected to be completed within two months from the date of approval from the shareholders/members.
The company said that these corporate actions were approved in order to enhance the liquidity in the capital market, widen shareholder base and to make the shares more affordable for small investors.
Investors should keep in mind that investing in penny stocks is risky. Do go through the fundamentals of companies before deciding to invest in them.
Written by Simran Bafna
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