avantel ltd: This multipacker stock that fell in the bonus shares issue … recorded a 4% fall! – multibagger stock plunges on record date of bonus shares issue

Shares of Avantel Ltd (Avantel Ltd) traded down more than 4% at Rs 273 on the Sensex on the 3: 1 bonus issue. It started trading X-Bonus shares on June 17, 2022. This way the bonus shares will be paid in full by the additional shares issued by a company to its current shareholders.

Last month the board of directors recommended and approved 3 bonus shares (3: 1) for every 1 equity share held by the company’s equity shareholders as of a registration date. The company has set June 20, 2022 as the registration date to determine the eligibility of shareholders who are entitled to issue bonus shares.

The bonus shares will be credited within 2 months from the board approval date, July 06, 2022, Aventel said in a filing to the Exchange.

Bonus equity shares are issued from free balances, retained earnings and securities premium account. Also, as on March 31, 2022, the premium account for free stock, reserve income and securities stood at Rs.79,66 and Rs.44,996 respectively.

Aventel is a provider of satellite communications and wireless systems for telecommunications products and software solutions. Avental shares have yielded more than 110% of multiplebacker returns in a year. Whereas in 2022 the shares have so far risen 59% on a year-to-date (YTD) basis.