Penny stocks 7NR Retail Ltd and Janus Corporation Ltd were trading in the green on Monday, after the two turned ex-bonus with 1:5 and 4:3 ratio, respectively.
Both the companies had fixed November 28 as the record date for the purpose of ascertaining the eligibility of shareholders entitled to the bonus shares. Bonus shares are extra shares that a company grants to existing owners.
7NR Retail
The eligible shareholders are entitled to issuance of bonus shares of the company in the proportion of one new fully paid-up equity share of 1 rupee each for every five existing equity shares of 1 rupee each.
The company, which is engaged in wholesaling and retailing of the readymade garments, has given two bonuses since September 17, 2018.
The stock hit a new 52-week low in the past seven days. The stock price underperformed its sector by 40.29 percent in the past year.
For the quarter ended September, the apparels manufacturer's net profit slumped 72.9 percent on year, while the revenue rose 442.2 percent on year to ₹10.6 crore.
Janus Corporation
The eligible shareholders are entitled to four bonus equity shares of 10 rupees each for every three existing equity shares of 10 rupees each.
The stock has fallen 81.74 percent from 52-week high of ₹25.4. The stock price underperformed its sector by 179.81 percent in the past year.
As they have the potential for enormous returns, penny stocks are highly popular among small investors. Also, due to the extremely low price of these stocks, trading penny stocks is practically risk-free.
