Shares of Geekay Wires (Rs 10 to Rs 2) on Monday, October 23, while Jay Bharat Maruti ( Rs 5 to Rs 2) on Thursday, October 26, will ex-split. Meanwhile, on Friday, October 27, BCL Industries (Rs 10 to Re 1), Shashijit Infraprojects (Rs 10 to Rs 2), and Talbros Automotive Components (Rs 10 to Rs 2) will ex-split.
A stock split is usually done to increase the liquidity of the stock in the market. On the ex-split date, investors who are holding the stock until the record date will receive the new shares in demat accounts and the stock price will be adjusted according to the split ratio.
Meanwhile, on October 27, Astral (Rs 1.5/share), ICICI Lombard General Insurance Company (Rs 5/share), ICICI Securities (Rs 12/share), Jindal Stainless (Re 1/share), L&T Technology Services (Rs 17/share), and LTIMindtree (Rs 20/share) will trade ex-dividend. Remus Pharmaceuticals (Rs 2/share) will trade ex-dividend on 28th October.
The ex-dividend date is when the price of the equity shares of a company gets adjusted for the dividend payout. It is one or two working days before the record date. All the shareholders whose names appear in the company’s list by the end of the record date will be eligible to receive dividends.
Whereas, Krishana Phoschem (1:1) on Wednesday, Maruti Interior Products (1:1), and Shri Venkatesh Refineries (1:1) on Friday will trade ex-bonus.A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.
The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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