On Friday, the last trading day of the week, there was a huge sell-off in the stock market. Amidst this environment, there was a rocket-like rise in some penny stocks.
One such penny stock is of non-banking finance company Sunshine Capital Ltd. This penny stock got an upper circuit of 5% on Friday. This is the 6th consecutive day when the stock registered a rise.
If we look at the performance of the last six trading days of this multibagger penny stock, then it got an upper circuit on 4 of them. During a week, this stock has gained more than 24%.
We saw a selling scenario in the markets on Friday. Amidst this environment, the Sensex fell 1000 points to below 81,150 points. Nifty also registered a decline of more than 200 points.
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Reason For The Rise In Stock
The rise in the share of Sunshine Capital Ltd has come after some positive announcements made by the non-banking finance company (NBFC).
Last Thursday, the company announced its entry into the insurance broking business.
Sunshine Capital Ltd’s board of directors has decided to take the next step to expand Sunshine Capital Ltd’s operations in the insurance brokerage business.
Sunshine Capital Ltd said in a stock exchange file – This expansion is a way to improve the service we provide our customers. The move is aimed at broadening the range of our financial services.
In entering the insurance brokerage industry, the company hopes to profit from the expected growth of the Indian insurance industry.
In Preparation For The Listing On The NSE
Sunshine Capital’s board has also resolved to investigate the possibility of having the company listed as a mainboard member of the National Stock Exchange (NSE).
At present, Sunshine Capital Ltd share is listed on the BSE. Sunshine Capital Ltd’s stock was ex-bonus on March 7, 2024.
The company had given out bonus shares at the ratio 7:1 and the stock split took place in the ratio of 10:1.
Quick Fact
| Company name | Sunshine Capital |
|---|---|
| Type | Non-banking finance company (NBFC) |
| Recent Performance | 6 consecutive days of rise |
| Weekly Gain | More than 24% |
| Recent Rise | 5% upper circuit on Friday |
| Announcements | Entering insurance broking business |
| Expansion Plan | Broaden range of financial services |
| Target Industry | Indian insurance industry growth |
| Stock Action | Ex-bonus on March 7, 2024 |
| Bonus Share Ratio | 7:1 |
| Stock Split Ratio | 10:1 |
| Future Plan | Listing on NSE mainboard |
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