Penny stock under ₹5 declares 1:1 bonus shares. Details here

Penny stock under ₹5: KBC Global shares gained 2% on Monday, February 17, after the company's board of directors approved a bonus issue of shares in the ratio of 1:1.

The Nashik-based construction and real estate company's board of directors on February 15 approved the issuance of fully paid-up bonus shares in the ratio of 1:1, meaning that the company will issue one equity share for each share held.

The company will inform in due course the “record date” for determining shareholders entitled to receive bonus shares, KBC Global said in an exchange filing.

The bonus equity shares will be issued from the company's permissible reserves, including free reserves, securities premium account, and capital redemption reserve, as of March 31, 2024. A total of ₹261.43 crore will be utilised for the bonus issue.

The company’s share capital as of the date stands at ₹261.43 crore, consisting of an equal number of equity shares of ₹1 each, which will increase to ₹522.87 crore post the bonus issue.

Other Board Decisions

Apart from the bonus share issue, the company's board approved the change of name from KBC Global Limited to Dharan Infra-EPC Limited or such other name as approved by ROC. The previous name suggested by the board is not approved due to non-availability.

The company board also approved the appointment of Naresh Karda as Chairperson of KBC Infrastructure Limited, a UK-based wholly-owned subsidiary.

Share Price Impact

Shares of KBC Global, a penny stock, rose 1.8% following the announcement of the bonus share issue. The stock opened at ₹1.13 apiece, also its day's high. During the session, it touched a low of ₹1.11 apiece.

Despite today's gains, the stock has been in a base-building process, shedding nearly 50% of its value in the last one year. Meanwhile, so far in 2025, the penny stock has lost 36% of its value.

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