MUMBAI - Shares of Sinclairs Hotels Ltd have reached a new zenith, peaking at ₹256.95 on the National Stock Exchange (NSE). This significant surge, which has seen the company's stock more than double in the last half-year and gain another fifth in value since New Year's Day, has propelled the company's market capitalization to exceed Rs 650 crore.
The robust performance of the stock comes ahead of an extraordinary general meeting scheduled for Wednesday this week. At this critical meeting, shareholders will discuss and potentially approve a proposed bonus share issue. If approved, the bonus issue will grant shareholders one additional share, priced at ₹2 each, for every share currently held. This strategy is often employed to reward shareholders and increase the liquidity of a company's stock.
Sinclairs Hotels Ltd has announced that January 29 will serve as the record date for shareholders to be eligible to receive the announced bonus shares. This means that shareholders who own the stock as of that date will be entitled to the bonus shares.
In addition to these developments, it's worth noting that Sinclairs Hotels concluded a share repurchase totaling ₹30 crore for over fifteen lakh shares at ₹200 apiece on October 23 of last year.
Despite experiencing a slight dip in net profit year-over-year, Sinclairs Hotels has reported revenue growth and sustained a stable EBITDA, indicating a solid financial performance. The market appears to be responding favorably to both the company's overall health and the prospects of the forthcoming bonus issue.
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