Multibagger SME stock record date for 1:1 bonus issue tomorrow. Do you own?
Pulz Electronics are expected to be in focus today, as the record date for its 1:1 bonus issue is tomorrow, October 25, making today the last day to purchase shares for eligibility.
This means that the shareholders who have the shares of the company in their demat accounts on the record date, will be credited with an additional share of the company as a bonus.
“Pursuant to the provisions of Section 63 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Share Capital and Debentures) Rules, 2014 the Board hereby approved to issue fully paid Bonus Shares to the shareholders out of Free reserves and in the interest of all concerned, such issue to be made on the following terms and conditions: — The issue of shares will be made in the proportion of 1 (ONE) new share for every one equity share i.e., 1:1 held on record date,” said the company in a filing to the NSE.
Prior to this, the company has issued bonus shares to its shareholders twice, once in 2023 and the other instance in 2019, according to the data available on Trendlyne.
Companies typically issue bonus shares to utilize their free reserves, boost Earnings Per Share (EPS), and expand paid-up capital while reducing reserves. These shares, often called free shares, are distributed to shareholders at no extra cost.
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