On Thursday’s Intra-day trading in BSE, the shares of Sonata Software surged 12% to Rs 602.10. The IT software and consulting company stock traded ex-date for bonus issue in 1:3 ratio, i.e. one new fully paid-up equity share of Re 1 for every three fully paid-up existing equity shares of Re 1 each. On Wednesday, the stock was closed at Rs 714.75, which was unadjusted for bonus shares.

Sonata Software decided Saturday, September 10, 2022, as the record date to determine the eligibility of shareholders in issuing bonus equity shares. At 10:16 am, the stock traded 9% higher at Rs 585.50, compared to a 0.94% rise in the S&P BSE Sensex. Around 400,000 shares have altered hands on the NSE and BSE, against an average sub 100,000 shares have traded in the past two weeks called pre bonus issue.

However, in the calendar year 2022 (CY22), Sonata Software floundered the market as shares fell 8%, compared to a 0.59% improvement in the benchmark index. The stock had hit a 52-week low of Rs 457.50 earlier on June 20, 2022. Market Analysts at Prabhudas Lilladher demoted Sonata to ‘hold’ from ‘accumulate’ as the brokerage firm believes the revenue growth will be modest.

“The company would soon take 2-3 quarters to overcome supply-side constraints and the impending impact of weak macro milieu. Margins in International IT Services (IITS) business are too predictable to remain under pressure due to reintroduced investments in freshers, sales teams, managing team, and development centres in Canada, Ireland, and Mexico,” said the brokerage firm. Meanwhile, in the current fiscal year FY23, the company believes that it is gearing up to tap an assembly of opportunities and convey world-class client experience.

“Our emphasis is on Platformation TM at the core, and our industry-led tactic has started to pay off in these times when clients are observing to begin their digital journeys with us,” the company said.