1:8 Bonus Issue Share: Penny Stock Under ₹5 Surges 16.49% – Key Reasons Behind the Rally

Sellwin Traders, a micro-cap consumer products company, has caught the attention of investors after its stock surged 16.49% in just one week. Trading under ₹5 per share, this penny stock is back in the spotlight following its recent expansion plans and past corporate actions, including a 1:8 bonus issue and a 5:1 stock split.

With a market cap of ₹76.24 crore, Sellwin Traders is making strategic moves to strengthen its retail presence, fueling speculation about its future growth. Here’s why this stock is gaining momentum.

Why Is Sellwin Traders’ Stock Rising?

1. Aggressive Retail Expansion Under ‘Maajghar’ Brand

Sellwin Traders, in collaboration with SDF, has launched its first retail outlet ‘Maajghar’ in Ahmedabad, marking its entry into India’s culinary retail sector. The company plans to open 12 new outlets across major Indian cities in the next 12 months under a franchise model.

Backed by an investment of ₹15 crore, this expansion is expected to generate ₹23.5 crore in revenue, with long-term projections exceeding ₹50 crore annually.

2. Past Corporate Actions: 1:8 Bonus Issue & Stock Split

Last year, the company rewarded shareholders with two key corporate actions:

• 1:8 Bonus Issue (1 free share for every 8 held)

• 5:1 Stock Split (Face value reduced from ₹10 to ₹2)

These moves improved liquidity and made shares more affordable, attracting retail investors.

3. Strong Short-Term Performance

• Weekly Gain: +16.49%

• Recent Close: ₹3.39 (up 1.80%) (as of last trading session)

Should You Consider This Penny Stock?

While the recent rally and expansion plans are promising, penny stocks carry high risk. Investors should:
✔ Analyze financial health & debt levels
✔ Monitor expansion execution
✔ Consult a financial advisor before investing

Final Thoughts

Sellwin Traders’ 1:8 bonus issue, stock split, and retail expansion have sparked investor interest. If the company delivers on its growth plans, this sub-₹5 stock could see further upside. However, caution is advised due to the volatile nature of micro-cap stocks.

(Disclaimer: This article is for informational purposes only. Please consult a financial expert before making investment decisions.)