Small-cap stock Lorenzini Apparels witnessed a decline on Thursday, December 26 after the board deferred the issuance of bonus equity shares.
Lorenzini Apparels said that the Board of Directors at their meeting held on December 25 decided to postpone or defer the agenda items related to the Bonus Issue and the increase in authorized share capital.
“It was suggested by the Board members that the proposal of capitalization of reserves for issue of Bonus shares shall be reconsidered in due course,” the exchange filing added.
Following this development, Lorenzini Apparels share price dipped 3 per cent to ₹19.70 apiece as against its previous close of ₹20.30. The stock, with a market cap of ₹346.68 crore, hit the day’s high of ₹20.47 while it opened at ₹20.
At 3 pm, the stock was trading at ₹20.07 per share, down 1.13 per cent on the BSE.
The company, on December 20, had informed the exchanges that its board would consider the issue of bonus shares in the ratio of 1:1 to the equity shareholders by capitalization of reserves.
Appointment of Independent Director
While the board postponed the bonus share proposal, it approved the appointment of Sapna Khanna as an independent director of the company.
Khanna is a journalist with over 23 years of experience and has worked with The Hindustan Times, The Times of India, India Today, and Dainik Jagran among others. She started as a fashion journalist and has written on lifestyle, health and social issues as well.
Lorenzini Apparels is engaged in the business of manufacturing, designing and marketing of readymade garments. It offers a diverse range of formal, semi-formal and casual wear for men and women.
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