Lorenzini Apparels has announced massive rewards for its shareholdersSimla Investment. This penny stock is not only going to reward investors with 6 new bonus shares on the existing 11 equity shares but will also sub-dividend each share into new ten shares. Its stock split of 1:10 ratio and bonus 6:11 bonus issue ratio, and that's good news for both existing and new investors. Following this, Lorenzin shares hit back to back upper circuits.Udabur Stock

In the opening bell of Tuesday, Lorenzini shares froze at fresh 5% upper circuit of Rs 428 apiece on BSE with market cap of Rs 433.95 crore on BSE. This meant that there are only buyers in Lorenzini shares so far this week.

Upper circuits mean that there are several buyers in a stock price but no sellers.

Lorenzini Apparels is a multibagger. It made its stock split and bonus shares announcement on February 12. And on this day, the stock ended at a 5% upper circuit of Rs 408.30 apiece with a market cap of Rs 413.97 crore.

The stock is also currently higher by 487.3% from its 52-week low of Rs 73 apiece. But it is also closing its gap towards a 52-week high of Rs 475.20 apiece.

First up is the stock split. The ratio of 1:10 split means a division of every 1 (One) equity share of the nominal/face value of Rs. 10/- (Rupees Ten only) each into 10 (Ten) equity shares of the nominal/face value of Rs. 1/- (Rupees One only) each.

In a stock split, the face value of an equity share reduces, while the number of shares increases in the portfolio.

The reason behind Lorenzini's stock split is to improve the liquidity of the Company's Shares to make it more affordable for small investors and also to broaden the base of small investors.

Further, Lorenzini said that consequent to sub-division/split in face value of Equity Shares from Rs. 10/- each to Re 1/-, resulting in 10 Equity Shares of Re 1/- each for existing 1 Equity Share of Rs. 10/- each, conversion ratio for outstanding warrant stand changed to 1 (one) Warrant is convertible, at the option of the warrant-holder by paying the remaining 75% consideration within the time limit prescribed under the provisions of the SEBI (ICDR) Regulations, 2018, into 10 (Ten) Equity Shares of Re 1/- (Rupee One Only).

The company plans to complete the stock split tentatively within 2 months from the date of the Board's approval.

The record date to determine eligible shareholders for the 1:10 stock split will be announced in due course.

Next up is Lorenzini's bonus shares of the 6:11 ratio. This means that Lorenzini will issue Six Bonus Equity shares for every 11 (Eleven) fully paid-up Equity shares held] to the shareholders as on record date (including holders of outstanding warrants convertible into Equity shares).

Bonus shares will be issued out of the Securities Premium account/retained earnings/ free reserves or any other permitted reserves/surplus of the Company of the Company available as of 30th September, 2023.

The total number of securities proposed to be issued is 60,967,020 Equity Shares of the face value of Rs.1/- each (post considering the split of shares) which includes the amount of Rs. 56,63,842 specifically reserved for 10,38,371 outstanding Warrants convertible into Equity Shares.

The company plans to credit the bonus shares within 2 months from the date of Board approval.

The record date for bonus shares will also be announced soon.