Bharat Rasayan Gets Board Nod For 1:1 Bonus Share Issue, Stock Split

Bharat Rasayan Ltd.’s board of directors approved a 1:1 issue of bonus share along with a share split, according to an exchange filing on Friday. This move is expected to increase the liquidity of the company’s shares and make them more attractive to a wider range of investors.

What is a Bonus Share Issue?

A bonus share issue is a corporate action where a company issues additional shares to its existing shareholders without any additional cost. The number of shares issued is typically in a predetermined ratio, in this case, 1:1. This means that for every one share held by an investor, they will receive one additional share.

For more information on bonus share issues and how they affect investors, check out our detailed guide.

What is a Stock Split?

A stock split is a corporate action where a company divides its existing shares into a larger number of shares, typically with a lower face value. In this case, the board has approved the sub-division of existing 41.55 lakh equity shares with a face value of Rs 10 into 83.10 lakh equity shares with a face value of Rs 5.

Learn more about stock splits and their impact on investors.

Record Date and Eligibility

Investors who want to be eligible for the bonus issue should pay attention to the record date, which will be announced later and is subject to the approval of the shareholders of the company. The record date is used to determine eligible shareholders, and only those who hold the shares in their demat account as of this record date will be eligible for the bonus allotment.

Under India’s T+1 settlement cycle, investors must buy the shares at least one trading day before the record date to be eligible. For more information on T+1 settlement cycle and its implications for investors, check out our detailed analysis.

Impact on Share Price

Shares of Bharat Rasayan closed 1.22% higher at Rs 11,768 apiece on the NSE on Friday, compared to a 0.37% decline in the Nifty index. The stock has risen 17.14% year-to-date and 11.73% in the last 12 months.

For the latest updates on Nifty index and other major indices, check out our market updates section.

Conclusion

In conclusion, the 1:1 bonus share issue and stock split announced by Bharat Rasayan Ltd. are expected to increase the liquidity of the company’s shares and make them more attractive to a wider range of investors. Investors should pay attention to the record date and ensure they are eligible for the bonus allotment.

For more information on investing in the Indian stock market, check out our detailed guides and analysis.