Linc Ltd Has Approved a Stock Split & Bonus Issue

Linc Ltd., a well-known name in the stationery industry, has just rolled out a double treat for its shareholders with an approved stock split and a bonus share issue. This is designed to make the company’s shares more accessible and attractive, particularly to retail investors, and comes alongside the company’s quarterly results announcement.

Stock Split for Liquidity

Linc’s board has greenlit a 1:2 stock split, which means each share with a face value of Rs.10 will be split into two shares, each valued at Rs.5. Why? To make shares easier on the pocket for individual investors and add liquidity in the market. This aligns with Linc’s vision to widen its investor base. Pending shareholder approval, this split is set to be completed within two months, boosting the total count to 2.9 crore fully paid-up shares and raising the share capital to Rs.14 crore.

Bonus Issue: Doubling Shares

In addition, Linc’s board approved a 1:1 bonus issue, meaning shareholders will get one new Rs.5 share for every existing one they hold. This bonus will be funded by capitalizing Rs.14 crore from the company’s securities premium account, which stood at Rs.20.96 crore as of March 2024. After this, the share count will rise to 5.9 crore shares, with an expanded capital of Rs.29.7 crore.

How’s Linc Performing?

Over the past two and five years, Linc has given shareholders returns of 134.31% and 263.24%, respectively. On Tuesday, Linc’s stock opened slightly lower and is trading at Rs. 646.45, down over a percent. 

Conclusion: With a good product lineup and a presence across 50+ countries, Linc’s decisions, like this stock split and bonus issue show its plans for investor growth. This could be a game-changer, drawing in more retail investors and adding momentum to Linc’s growth journey.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.