Gensol Engineering announces 2:1 bonus issue of shares to investors
bonus shares.
«The Board of Directors of the company considered, approved and recommended a bonus issue of 2 equity shares for every 1 equity share held by the shareholders as on the record date,» the company said in a filing.
The record date is yet to be determined by the company and will be informed to the exchanges soon. The proposed bonus issue is subject to approval at the AGM and will be completed within two months from the date of announcement.
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.
All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.
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.
Gensol Engineering provides renewable energy project development services, offering concepts for commissioning advisory, execution, and operation services for solar projects.
On Tuesday, the company's shares closed 5% higher at Rs 2,033.8 on NSE.
