Corporate actions this week: Nestle India to go ex-split, Allcargo Logistics ex-bonus and more
Nestle India, Pearl Global Industries, and Indian Link Chain Manufacturers will trade ex-split, while Allcargo Logistics and M Lakhamsi Industries will trade ex-bonus this week.
Shares of Indian Link Chain Manufacturers (Rs 100 to Rs 10) on Wednesday, January 3, while Nestle India ( Rs 10 to Rs 1), 7NR Retail (Rs 1 to Rs 10), and Pearl Global Industries (Rs 10 to Rs 5) on Friday, January 5, 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.
Whereas, the record date for the right issue of LA TIM Metal & Industries is fixed on Tuesday, 2nd January 2024.
A rights issue is a prevalent form of corporate action where the company invites existing shareholders to buy additional shares in the company at a discounted price within the said period (the cut-off date).
However, as existing shareholders of the company, you do not have an obligation to buy additional shares.
If you think the company has a flourishing business, you can apply for the rights issue and increase your stake within the company.
Meanwhile, Allcargo Logistics (3:1) on Tuesday, and M Lakhamsi Industries (1:50) 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
