Mindteck announces 1:4 bonus shares: Record date confirmed after BSE and NSE nod
Mindteck will reward its shareholders one extra share for every four shares they already own, the technology firm announced in an exchange filing. Both BSE Ltd and the National Stock Exchange of India Ltd have approved the bonus share issue. The record date for the bonus issue is September 20, 2024.
"the Company has received the Trading approval from BSE Limited and National Stock Exchange of India Limited for Bonus Issue in the ratio of 1:4 i.e., 1 (One) new fully paid-up equity share of Rs. 10/- each for every 4 (Four) existing fully paid-up equity shares of Rs. 10/- each held by them as on September 20, 2024 (Record date)," said the filing.
Why companies give bonus shares?
Companies typically issue bonus shares to reward their shareholders and enhance the liquidity of their stock. Bonus shares are a way to reward existing shareholders without paying out cash dividends. It increases the number of shares they hold, potentially increasing their wealth if the company’s stock price rises.
By issuing more shares, companies can increase the liquidity of their stock, making it easier to buy and sell on the market. It also signals to the market that the company is confident about its prospects and financial health.
Not just Mindtech, companies such as Power Mech Projects, NBCC, Bombay Metrics, Shikhar Leasing, and Classic Electric have rewarded bonus shares to their investors in the last few days.
"the Company has received the Trading approval from BSE Limited and National Stock Exchange of India Limited for Bonus Issue in the ratio of 1:4 i.e., 1 (One) new fully paid-up equity share of Rs. 10/- each for every 4 (Four) existing fully paid-up equity shares of Rs. 10/- each held by them as on September 20, 2024 (Record date)," said the filing.
Why companies give bonus shares?
Companies typically issue bonus shares to reward their shareholders and enhance the liquidity of their stock. Bonus shares are a way to reward existing shareholders without paying out cash dividends. It increases the number of shares they hold, potentially increasing their wealth if the company’s stock price rises.
By issuing more shares, companies can increase the liquidity of their stock, making it easier to buy and sell on the market. It also signals to the market that the company is confident about its prospects and financial health.
Not just Mindtech, companies such as Power Mech Projects, NBCC, Bombay Metrics, Shikhar Leasing, and Classic Electric have rewarded bonus shares to their investors in the last few days.