Shares of Minolta Finance, a penny stock, have been on an impressive rise, hitting the upper circuit for several days in a row. On Thursday, the stock surged by 5%, reaching an intraday high of Rs 12.93, which is the highest price in the last 52 weeks.
This surge in the stock's price is mainly attributed to Minolta Finance's recent corporate moves. To enhance liquidity and raise capital, the company's board of directors approved two key initiatives: a stock split and a rights issue. These decisions have significantly boosted investor interest, contributing to the recent surge in the stock's value.
In December 2023, Minolta Finance's stock hit a 52-week low of Rs 6.24, and since then, it has seen a 107% rise. The stock has gained more than 21% in the first three trading sessions of December 2024, marking a 76% increase over the past year. In the last three years, the stock price has skyrocketed by 443%, from Rs 2.38 in December 2021.
Additionally, the board of Minolta Finance has approved a 1:10 stock split, which will reduce the face value of each share from Rs 10 to Re 1 after the split. They have also authorized a significant increase in the company's authorized share capital to Rs 60 crore, including the issuance of 6 crore new equity shares. This change will require an amendment to the company's Memorandum of Association and is subject to shareholder approval.