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.
βPursuant 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,β 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.
The investors must purchase the stock before the ex-date to qualify for bonus shares, as those buying on or after the ex-date wonβt be eligible.The shares of Pulz Electronics have given multibagger returns of 135% in the last one year and nearly 33% in the last 6 months. The stock is up by 8.7% and 3.35% in the last one week and one month respectively.Other than Pulz Electronics, BEW Engineering also announced an issue of bonus shares in the ratio 3:1, fixing October 25 as the record date for the purpose.
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