Key Points
- SBC Exports Limited has extended the record date for its 1:2 bonus share issue to March 10, 2025, from March 5, 2025, giving shareholders more time to qualify.
- The company, known for silk and wool hand-crafted carpets, closed at Rs 19.77 per share on Friday, with a market cap of Rs 629.69 crore.
- The bonus issue involves issuing 15,87,30,000 new shares, with the allotment date set for March 11, 2025.
Company Background
SBC Exports Limited is an established contributor in India's fashion industry with focus on high quality silk and wool hand-spun carpets. Apart from its operations in silk and wool carpets, the company further deals with the trading of apparel, manpower supply services, tour operator services with a sister company, Mauji Trip Limited, branching into travel services.
Bonus Share Details
The bonus share issue is in a 1:2 ratio, meaning for every 2 existing shares, shareholders will receive 1 new share, each valued at Re. 1. The extension of the record date to March 10, 2025, from March 5, 2025, allows more time for investors to become eligible. The deemed date of allotment is March 11, 2025, ensuring shares are distributed the following day.
Financial Performance
The bonus issue is in a ratio of 1:2, i.e., for each 2 shares outstanding, the shareholders will be issued 1 new share of value Re. 1. The record date is extended from March 5, 2025, to March 10, 2025, so there is additional time for investors to become eligible. The deemed allotment date is March 11, 2025, to ensure distribution of shares the next day.
Detailed Analysis of SBC Exports Limited Bonus Share Announcement
SBC Exports Limited, one of India's leading apparel companies, has recently been in the news for opting to move the record date for issuing a 1:2 bonus share, an action that bears important ramifications for investors and shareholders. This survey note is a complete overview, drawing on several sources to provide in-depth accuracy, and is written specifically for readers who want an in-depth understanding of the situation up to March 2, 2025.
Company Profile and Market Position
SBC Exports Limited, registered in 2011 and headquartered in Uttar Pradesh, is known for producing hand-crafted silk and wool carpets, making it a prominent player in the apparel and textile market. The firm has expanded its activities, such as garment trading, manpower supply services, and tour operating services through its subsidiary, Mauji Trip Limited, providing travel solutions in the form of tour packages and hotel reservations. On Friday, March 2, 2025, shares of the firm closed at Rs 19.77, which was a fall of 3.56%, with a market capitalization of Rs 629.69 crore, highlighting its strong presence in the market.
Bonus Share Issue: Extension and Implications
The focal point of the announcement is the extension of the record date of the issue of bonus shares from March 5, 2025, to March 10, 2025, in accordance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The extension, as per GoodReturns.in, gives shareholders extra time to make themselves eligible for the bonus shares. The bonus issue is in the ratio of 1:2, i.e., for each 2 fully paid-up equity shares of Re. 1 each held by the shareholders, 1 new fully paid-up equity share of Re. 1 each will be given. The number of bonus shares to be issued is 15,87,30,000, and the deemed date of allotment is March 11, 2025, in accordance with SEBI Circular No. SEBI CIR/CFD/PoD/2024/122 dated September 16, 2024. Bonus shares, as a corporate action, are extra shares given to shareholders without any added expense, normally to boost the number of shares outstanding and the stock's attractiveness to retail investors. The step can also demonstrate the company's optimism about its financial well-being and future prospects, rewarding the shareholders without giving cash dividends. The third-quarter fiscal year 2025 (Q3FY25) financial performance of SBC Exports Limited gives background to this bonus issue. In comparison with Q3FY24, the company posted: Net sales of Rs 72.04 crore, an increase of 38.65% from Rs 51.96 crore. Net profit of Rs 3.58 crore, an increase of 24.76% from Rs 2.87 crore. EBITDA of Rs 5.93 crore, a growth of 27.53% from Rs 4.65 crore. These numbers, obtained from GoodReturns.in, show strong operating performance, which could well justify the bonus share issue as a way to take advantage of growth and increase shareholder value.
Market and Analyst Perspectives
The market reaction to SBC Exports' share price has been varied, with a recent close at Rs 19.77, lower by 3.56% on Friday, March 2, 2025. This is in line with overall market trends and the company's latest financial reports. An interesting view is provided by independent research analyst A R Ramachandran, whose bearish call on the stock was reported by GoodReturns.in. He points out a key resistance at Rs 20.92 and support at Rs 19.2 and indicates that a close below the support could see the stock fall to a target price of Rs 16.5. This bearish outlook provides another layer of warning for investors, especially considering the bonus share news, and highlights the volatility and technical analysis factors in the action in the stock.
Additional Context and Historical Data
Historical information from different sources, including MoneyControl and Economic Times, indicates that SBC Exports has a history of bonus issues, the latest of which was announced in 2023 in the same 1:2 ratio, ex-bonus from January 19, 2024. The trend indicates a practice of rewarding shareholders from time to time, perhaps to keep investors interested and improve liquidity. Recent corporate moves, such as quarterly numbers and board meetings, also reflect proactive approach towards regulatory needs, as evidenced by announcements on MoneyControl.
Comparative Market Data
To provide a broader perspective, here is a table summarizing key financial and market metrics for SBC Exports Limited, based on available data:
Metric | Value |
|---|---|
Current Share Price (Mar 2, 2025) | Rs 19.77 |
Market Capitalization | Rs 629.69 crore |
Q3FY25 Net Sales | Rs 72.04 crore (up 38.65%) |
Q3FY25 Net Profit | Rs 3.58 crore (up 24.76%) |
Q3FY25 EBITDA | Rs 5.93 crore (up 27.53%) |
Bonus Share Ratio | 1:2 |
Total Bonus Shares | 15,87,30,000 |
Record Date | March 10, 2025 |
Deemed Date of Allotment | March 11, 2025 |
This table, derived from GoodReturns.in, encapsulates the financial health and corporate action details, offering a snapshot for investors.
Implications for Investors
The extension of the record date to March 10, 2025, is particularly significant for investors, as it provides an additional five days to purchase shares and qualify for the bonus issue. This could potentially increase trading volume and interest in the stock, especially given the company's recent financial growth. However, the bearish analyst view suggests caution, and investors are advised to consult certified experts before making decisions, as highlighted in the disclaimer from GoodReturns.in.
Conclusion
SBC Exports Limited's extension of the record date for its 1:2 bonus share issue to March 10, 2025, reflects a strategic move to enhance shareholder participation, backed by strong Q3FY25 financials. While the market cap and recent share price indicate stability, the bearish analyst perspective introduces a note of caution. This comprehensive analysis, grounded in regulatory filings and financial reports, aims to equip readers with the necessary insights for informed decision-making.
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