Small-Cap Stock Soars 20% Ahead of Record Date For 2 Corporate Rewards

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Small-Cap Stock Soars 20% Ahead of Record Date For 2 Corporate Rewards

By Malvika Gurung

Investing.com -- Shares of the online travel agency company Easy Trip (NS: EASM ) Planners skyrocketed 20% and hit an upper circuit at Rs 57.3 apiece on the NSE on Monday.

The travel stock traded ex-bonus and ex-split on Monday, shooting up sharply by 17% in the morning session, a day ahead of the record date for two corporate actions - bonus share issue and stock split.

Easy Trip Planners informed the stock exchanges in a filing dated Nov 10, 2022, that its board approved:

  • Stock split in the ratio of 1:2: Sub-division of each existing equity share of face value of Rs 2 each into two equity shares of face value of Re 1 each, on a fully paid-up basis, and
  • Bonus share issue in the ratio 3:1: Three bonus equity shares of face value of Re 1 each will be issued for every one fully paid-up equity share of Re 1.

The small-cap company has fixed Nov 22, 2022, as the record date for determining the eligibility of shareholders entitled to receive the corporate rewards.

The company announced in an exchange filing on Saturday that its Board of Directors will meet on Nov 23 at 11 am through video conferencing to consider and approve the allotment of bonus equity shares.

Splitting a stock typically increases the stock’s liquidity in the capital market and makes it more affordable for small investors. Doing so increases the number of shares in the market while keeping the stock’s market capitalization unchanged.

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