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…
At regular time intervals, I like to discuss selective questions from readers of this blog. Many times, I discuss randomly with no particular theme. It is usually based on either intriguing questions or inquisitive questions or just that I like the question. Now that markets have zoomed higher relative to last year, most of these questions have slowly drifted towards buying price. I give priority to respond to all questions that come from regular readers of my blog. I make sure I give them my best response. Others, I may or may not, depending upon if I have time to get to them or whether they are good questions. 
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.
Recent Comments