Thanks to the latest boom in the markets, the number of penny stocks are fast dwindling and bringing relief to the shareholders. A penny stock is a stock which trades below its paid-up value. For e.g. if a company share price falls below its face value is said to be a penny stock.
Over the past one year, as many as 410 companies have seen a change in fortune. The number of companies trading below their paid-up value declined from 882 on March 9, 2009 (day the Sensex touched low of 8,160) to 472 on March 23, 2010.
These 410 companies have senn the investors' wealth surge by 170% or Rs 10,721 crore. The aggregate market capitalisation of these 410 stocks increased from Rs 6,274 crore on March 9, 2009 to Rs 16,995 crore, yesterday. The Bombay Stock Exchange (BSE), Sensex has appreciated by 114% and the S&P CNX Nifty 104% during the same period.
The market prices of 70% or 289 stocks have more than doubled in the past one year. Of this, 17 stocks appreciated by more than 1000%, 26 gained 500-1000% and 246 rose by 100-500%.
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