Shares of this microcap company jumped around 8 percent in Friday’s trading session after announcing a record date for the issuance of bonus shares in the ratio of 1:1. In one year, the shares have delivered a multibagger return of 135 percent to its shareholders.
With a market capitalisation of Rs. 618 crores, the shares of Sinclairs Hotels started Friday’s trading session on a flatter note at Rs. 227.90 compared to its previous close of Rs. 228.30. The shares hit a high of Rs. 247.80, gaining around 8 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 243.05 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had fixed January 29, 2024, as the ‘Record Date’ to ascertain the eligibility of Shareholders for the issuance of fully paid-up bonus shares in the ratio of 1:1, i.e. one equity share of Rs. 2 each fully paid up for every one existing equity share of Rs. 2 each.
Furthermore, the company mentioned that the approval of Shareholders will be obtained in an Extra Ordinary General Meeting of the company scheduled on January 18, 2024.
On October 25, 2023, Sinclairs Hotels completed its third buyback of 15,20,000 equity shares of Rs 2 each for Rs 200 per share amounting to Rs 30 crores.
A company issues bonus shares for its shareholders to increase the liquidity of the stock, and to decrease its stock price and make it affordable for investors.
Coming onto the company’s financial statements, the revenue decreased by 52 percent from Rs. 18.46 crores in the June quarter to Rs. 8.52 crores during the September quarter. In addition, the net profits declined by 85 percent from Rs. 8.48 crores to Rs. 1.27 percent during the same timeframe.
The company plans to expand its chain by acquiring properties on outright purchase or lease. The strategy is to acquire or lease properties located around the company’s existing properties to take advantage of the cluster approach.
Headquartered in Kolkata, Sinclairs Hotels was incorporated in 1971. It operates in the hospitality sector, managing a chain of hotels and resorts under the brand “Sinclairs Hotels & Resorts”. The company owns and operates nine properties in various locations across India, including Ooty, Burdwan, and Darjeeling.
Written By Vaibhav Patil
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