Big Update Regarding 5:1 Bonus Shares Announced by Specialty Retail Stock: Do You Own?

Eastern Logica Infoway Ltd. is a small-cap company that works in the specialty retail sector. The stock opened at a higher price on the BSE today, Rs 299 per share. However, due to sell-off pressure, the stock dropped as high as Rs 275 during the morning trades, reaching an intraday low. Following the company’s announcement on the issuance of bonus shares on Wednesday, there was pressure on the stock to drop down.

An Update On The Issuance Of Bonus Shares By Eastern Logica Infoway
Regarding the above-mentioned issue, we thus notify you that, on February 28, 2024, BSE Limited granted Listing Approval with respect to the Issuance of Bonus Shares, as authorized by the shareholders at the Extra Ordinary General Meeting on February 10, 2024. Eastern Logica Infoway said in a regulatory filing on Wednesday that “The Company shall further proceed with the Corporate Actions with the Depositories in consultation with the RTA followed by the Final Trading Applications with the Stock Exchange and ensure to credit the bonus shares at the earliest.”

Eastern Logica Infoway Bonus Shares Update “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), we would like to inform you that the Board Meeting of the Company was held today, February 27, 2024, which commenced at 12:30 P.M. and concluded at 1:35 P.M., the Board of Directors of the Company has inter alia” taken into account and approved the following:

Bonus shares are distributed to current owners in accordance with the record date.
sanctioning an 8 crore rupee ad hoc limit with the State Bank of India.
Application to increase ICICI Bank’s CC/EPC/PCFC/WCDL/BG limit to up to Rs. 11 crores.
application for the company’s trademark and logo to be registered.
Give Mr. Sundeep Mishra permission to sign and carry out the rent agreements for the opening of 14 new retail locations across India.

Application for Trade License for West Bengali retail outlets opening up.
New POS machine applications must be submitted before any retail location may open.The allocation of Eastern Logica Infoway Bonus Shares
“We would like to notify you that at today’s meeting, on February 27, 2024, the Board of the Company authorized the allocation of 1,42,53,345 fully paid-up equity shares, valued at Rs. 10/- (Rupees Ten) apiece, as Equity Bonus Shares. The Equity Bonus Shares are distributed to eligible members whose names appeared in the list of shareholders as of February 21, 2024, the record date fixed for this purpose, in the ratio of 5:1, or 5 (five) new fully paid-up equity shares of 10/- (Rupees Ten) each for every 1 (one) existing fully paid-up equity share of Rs. 10/(Rupees Ten) each held,” Eastern Logica Infoway said in a stock exchange filing on Tuesday.

The pre-allotment of bonus shares yielded 28,50,669 equity shares of Rs. 10/-each or Rs. 2,85,06,690/-in paid-up share capital for the company. In contrast, the post-allotment of bonus shares yielded 1,71,04,014 equity shares of Rs. 10/-each or Rs. 17,10,40,140/-in paid-up share capital.