1:1 Bonus Shares: Penny stock under ₹10 in focus after it sets record date bonus issue

A penny stock in the business of real estate construction, development, civil contracts (EPC), and related activities, has gained attention after announcing a record date for issuing 1:1 bonus shares. This move is expected to increase investor interest and could lead to potential upside in the stock’s performance. Investors are closely watching the stock for any further developments.

Price Variation

During Friday’s trading session, shares of KBC Global Ltd opened at Rs.0.99 each, falling from the previous closing price of Rs.1.01 per share. The shares are currently trading at Rs.0.98 apiece.

Record Date Announcement

KBC Global Ltd has announced that it has fixed the ‘Record Date’ as Friday, April 4, 2025, to determine the eligible shareholders who will be entitled to receive the Bonus Shares. This decision comes after the approval of the bonus issue by the company’s shareholders at an Extraordinary General Meeting (EGM) held on Saturday, March 22, 2025. 

The issuance of these bonus shares is expected to enhance shareholder value and could drive positive market sentiment. Shareholders on record by the designated date will be entitled to the bonus shares, contributing to the company’s overall growth and strengthening its financial standing.

Core Services

KBC Global is primarily engaged in the development of residential projects, offering a range of properties from 1 BHK apartments to luxurious penthouses. In addition to this, the company undertakes civil contracts and various construction-related activities, contributing to the growth and development of infrastructure.

International Projects

KBC Global is also making strides internationally, with a significant project in Liberia. The company has signed a Memorandum of Understanding (MOU) with the Liberia Special Economic Zone Authority for a USD 12.5 million initiative that includes the development of residential complexes, low-cost housing, and commercial spaces within the Special Economic Zone (SEZ). 

Furthermore, in June 2024, KBC Global entered into a USD 20 million civil engineering contract with CRJE (East Africa) Ltd, a subsidiary of the China Railway Construction Group. This collaboration is aimed at strengthening KBC’s presence in infrastructure projects across Africa.

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Domestic Developments 

KBC Global is actively expanding its footprint in Nashik with the Deolali Project, situated on Jai Bhavani Road. Spanning 31,998 sq. ft., the project will feature six commercial units and twenty-two residential units, reflecting the company’s dedication to community development. Additionally, the company is working on a series of ongoing projects under the Hari brand. These projects include both residential and commercial developments designed to enhance local infrastructure.

Financial Overview

In its recent financial update, KBC Global Ltd reported consolidated revenue of Rs.1.00 crores for Q3 FY25, reflecting a decrease of 92 percent compared to Rs.13.00 crores in Q3 FY24. However, the company recovered a few of its net losses to Rs.20 crores in Q3 FY25, from Rs.29 crores posted during the same period last year.

Ratio Analysis

KBC Global Ltd has a market capitalization of Rs.264.05 crores. The company maintains a healthy financial position with a current ratio of 28.83 and a low debt-to-equity ratio of 0.08, indicating strong liquidity and minimal reliance on debt. However, its EV-to-sales ratio stands at -12.01, reflecting negative enterprise value relative to sales. The total debt amounts to Rs.72.64 crores.

Written by – Siddesh S Raskar

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