Recently, Aegis Logistics announced the issue of bonus shares to existing shareholders. It will issue two additional shares for every three existing shares. These so called bonus shares will be paid from reserves it has accumulated over a period of time. Before you read this post, I suggest you read my earlier post about what really is a Bonus Shares.
Aegis has accumulated a reserves of Rs 167 crore in last few years against equity capital of only Rs 18.77 crore. These reserves are nothing but accumulated profits. The company will issue additional 12.5 million shares and increase capitalization by additional Rs. 12.54 crore. The new capital base for Aegis is likely to be Rs 31.31 crore [18.77 + 12.54]. In this announcement, there is no indication or even a hint on why the company decided to issue bonus shares. It is up to financial media and investors to figure out. Continue reading rest of this article…
Aegis Logistics Ltd (AEGISCHEM) is focused in supply management of oil and gas logistics. Liquid Terminal Division provides storage and terminal facility for oil and chemical products. Gas Terminal Division provides imports, storage, and distribution of petroleum products like LPG and propane. It services are related to sourcing of product, storage and port operations, arranging road and pipeline movement, shipping, and integrated supply chain management. This is small caps which has potential for long term buy and hold because it operates in infrastructure sector and has good financial management.
I am continuing to keep looking for good companies and prepare my watch list. Keeping with this thought process; I looked at few stocks in small cap domain and applied my screening process. I have short listed following five small cap companies that I believe warrant further detailed analysis in the context of my buying objectives.
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