1:20 bonus shares: Zero bank debt company acquires major trade name for Rs 34.53 crore to boost global business and brand trust

DSIJ Intelligence-1 / 25 Jul 2025/ Categories: Penny Stocks, Trending

1:20 bonus shares: Zero bank debt company acquires major trade name for Rs 34.53 crore to boost global business and brand trust

. The stock is up by 19 per cent from its 52-week low of Rs 8 per share with a PE of 10x whereas the industry PE is 30x.

On Friday, shares of Jonjua Overseas Ltd plunged 12.5 per cent to Rs 9.55 per share from its previous closing of Rs 10.91 with an intraday high of Rs 10.36 and an intraday low of Rs 9.22. The shares of the company saw a spurt in volume by more than 2.70 times on the BSE.

Jonjua Overseas Ltd. has announced the acquisition of the "Major HSJonjua" trade name from Harjinder Singh Jonjua, a related party, for a consideration of Rs 3,453.21 lakh. This strategic investment, expected to be completed by July 25, 2025, aims to significantly expand Jonjua Overseas Limited's global business reach and enhance public trust, leveraging a trade name established in the early 1990s and acquired by Harjinder Singh Jonjua in 1993. The acquisition, valued based on a valuer's report, is payable on an unsecured loan basis, with potential adjustment against share subscription, and requires no governmental or regulatory approvals.

Additionally, a 1:20 bonus share issue has been sanctioned, resulting in 11,54,607 new equity shares valued at Rs 1,15,46,070, to be funded from free reserves. Monday, July 28, 2025, is the record date for this issue, pending shareholder and regulatory approvals. A committee will oversee the bonus issue, and the Board also approved raising the limit for related party transactions from Rs 20 crore to Rs 50 crore, also subject to shareholder endorsement. A Board meeting is scheduled for July 29, 2025, to allot these bonus shares.

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About the Company

Jonjua Overseas Ltd is an Indian company involved in various sectors, including service exports, corporate consultancy, agriculture, and the sale of printed books. The company offers services such as export services, printing of books, agriculture, and domestic service sales. The company has a market cap of Rs 24 crore. According to the financials, the company reported positive numbers in its half-yearly results (H1FY25) and annual results (FY24).

The stock’s 52-week high is Rs 13.50 and its 52-week low of Rs 8. The stock is up by 19 per cent from its 52-week low of Rs 8 per share with a PE of 10x whereas the industry PE is 30x.

Disclaimer: The article is for informational purposes only and not investment advice.