Today's focus is on multibagger stocks due to a 2:1 bonus share and a 1:10 stock split. Why is this

 Today's focus is on multibagger stocks due to a 2:1 bonus share and a 1:10 stock split. Why is this

Multibagger Stock: For each share of the company that eligible shareholders currently own, they will receive 2 bonus shares.

Shares of Captain Pipes are among the multibagger stocks that the Indian stock market has recently offered, thanks to bonus shares and a stock split. Today's attention is on this multibagger stock because it is currently trading X-Bonus and X-Split. The small-cap firm has announced a stock split in the ratio of 1:10 and the issue of bonus shares in the ratio of 2:1. It indicates that following the stock split, the corporation will issue qualified shareholders two bonus shares for each share of the company they now own. The shareholders' overall shareholding will increase by a factor of ten.

In other words, the bonus share issue will result in a three-fold rise in one's shareholding, which will climb to 30 fold after the stock split. In other words, the shareholders will benefit from the 2:1 bonus share and 1:10 stock split because their shareholding will increase by 30 times. As the bonus share and stock split will result in an increase of Re 1, the shareholders will benefit from the bonus and stock split. For Rs. going forward, there will be a 30 percent hike.

The Indian markets have already been informed of the bonus shares by the small-cap multibagger stock "This is to inform you that, subject to approval by the shareholders at the ensuing Extraordinary General Meeting, the Board of Directors of the Company met today, Friday, January 27, 2023, at 3:30 PM and ended at 5:15 PM at the Registered Office of the Company. Among the items discussed were the following:- 2 (two) for every 1 (one)) Issue of Bonus Shares Equity Shares held by the Equity Shareholders of the Company as on the "Record Date" The shareholders' approval and any additional necessary statutory and regulatory approvals are pending on the Bonus Issue of Equity Shares."

"You are hereby informed that the Board of Directors of the Company is scheduled to meet today, Friday, January 27, 2023, at 3:30 p.m. and concluded at 5:15 p.m. at the Registered Office of the Company, among other things, to consider the following, subject to the approval of the shareholders at the ensuing Extraordinary General Meeting:" the small-cap company said in a statement to the Indian markets. By dividing or subdividing 10 (ten) equity shares with a face value of Rs. 1 into 1 (one) change in capital of the company.

Later, the BSE-listed small-cap business disclosed that March 3, 2023, has been set as the record date for the issuance of bonus shares and stock subdivision.