Padam Cotton Yarns, a textile company trading as penny stock, will be in focus on Friday, June 27. This is because the company is going to split for the first time in the ratio of 1:10. Padam Cotton's stock split comes after two bonuses in the ratio of 2:3 and 1:1.
Padam Cotton Yarns Share Price:
After market hours of June 26, Padam Cotton shares closed at Rs 41.68 apiece, up by 2% on BSE, with a market cap of Rs 53.81 crore. The stock's 52-week high and low are at Rs 127.56 apiece and Rs 11.55 apiece respectively.
The price-to-equity ratio is at 5.08x, while the return on equity (RoE) is at 103.40%.
Padam Cotton Yarns Stock Split:
The textile company will turn ex-split on June 27, which will also be its record date to determine eligible shareholders for a 1:10 ratio. The stock split ratio means the sub-division of One (1) Equity Share of the face value of Rs. 10/- (Rupees Ten only) each into Ten (10) equity shares of the face value of Re.1/- (Rupee One only) each.
Padam Cotton's stock split comes after two bonus issuance earlier in 2025.
What Is Stock Split?
A stock split is a corporate action where a company increases the number of its outstanding shares while proportionally decreasing the stock price. This process does not affect the company's market capitalisation or its overall value. It involves dividing each existing share into multiple shares, adjusting the quantity but not the total value of shares held by an investor, as per Religare Broking.
Padam Cotton Yarns Bonus Issue:
Earlier, in 2025, the company rewarded investors with 2:3 bonus issue in March and 1:1 bonus issue in January.
Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.
About Padam Cotton Yarns:
Padam Cotton Yarns Limited ('PCYL', or 'the Company'), a Public Limited company, incorporated on 2nd day of November, 1994 under Companies Act, 1956 based on Karnal, Haryana. PCYL is listed on the BSE (formerly Bombay Stock Exchange) in India. Padam Cotton yarns Limited has focus on enhancing offerings in Lifestyle and exploring various new trends in Readymade garments and adding new products in lifestyle and fashion industry. The Company focuses on its strong presence in domestic market nationally.