Multibagger stock announces free share issue at 1:10 ratio
Ducon Infratechnologies announced that its board of directors at its meeting of February 25, 2022 reviewed and approved the free allocation of capital shares in a ratio of 1:10. It also approved the increase in the authorized share capital of the company and the consequent modification of the capital clause of the memorandum of association of the company.
“The Board recommended the free issue of Participating Shares in the proportion of 1 (one) Participating Share of Re1/- each for 10 (ten) Participating Shares of Re 1/- each held by the shareholders of the Company, as indicated in the filing date, subject to shareholder approval by postal vote,” the company said in an exchange filing.
In addition, the Board of Directors has also approved the reservation of 1 capital share of Re 1/- each for 10 capital shares of Re 1/- each to be acquired upon conversion for the holder of warrants whose warrants would be converted.
A company usually issues free shares to its shareholders in order to increase the liquidity of the stock as well as with the aim of decreasing its stock price to make it affordable for investors. Free shares are additional fully paid shares issued by a company to its existing shareholders.
The multibagger stock is up more than 260% over a one-year period, while it has jumped 104% in the past six months alone. Ducon Infra shares are up around 9% in 2022 (YTD or YTD) compared to a decline of more than 5% in the benchmark BSE Sensex index.
Ducon Infratechnologies is a fossil fuel technology company that owns diversified technologies and operates in a variety of business segments, to provide solutions and address challenges in the infrastructure, FGD systems and material handling industries. In the infrastructure sector, Ducon provides complete FGD systems in thermal power plants, bulk material handling systems for alumina, fly ash handling systems and electrification projects.
Never miss a story! Stay connected and informed with Mint. Download our app now!!