A real estate development company has announced a bonus issue in the ratio of 1:2 and has fixed August 18, 2023, as the record date for determining the eligibility of shareholders to the entitlement of bonus shares.
Accordingly, those shareholders who hold the shares of Lancor Holdings as of the record date will receive one bonus equity share of ₹ 2 each fully paid up, for every two equity shares that they hold in the company. Such bonus shares will be credited on or before September 12, 2023. The company will be using ₹ 4.05 crores for the issue from its free reserves.
Lancor Holdings is engaged in the business of real estate development, leasing of commercial properties and allied activities.
In the past two years, the company’s share price escalated from ₹ 10.80 apiece to ₹ 50.00, delivering multibagger returns of 363 percent. Therefore, if an investment of ₹ 1 lakh was made in the company’s shares a year ago, the value of the holdings would be ₹ 4.63 lakhs today!
With a market capitalization of ₹ 207 crores, Lancor Holdings is a penny stock listed on the Bombay Stock Exchange (BSE). It has a negative return on equity of 0.26 percent and a debt-to-equity ratio of 1.04. Moreover, it has a dividend yield of 2.82 percent. The company’s promoters hold a 62.08 percent stake in it, followed by retail investors with 37.92 percent.
The company is yet to declare its results for the June quarter. However, its losses narrowed by a huge percentage to ₹ 0.34 crores in FY 2022-23 from ₹ 16.99 crores reported in FY 2021-22. Moreover, its revenue climbed 11.11 percent to ₹ 114.94 crores, as compared to ₹ 103.45 crores reported in the previous financial year.
Penny stocks have a low share price and a low market capitalization, therefore they are prone to pump-and-dump schemes. These stocks usually have low liquidity and do not trade easily. Investors should consult their investment advisors before investing in such stocks.
Written by Simran Bafna
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