Shares of Bharat Rasayan Ltd. surged up to 12% on Monday, October 20, after the company announced that its board will meet on October 24 to consider a bonus issue of shares and a stock split along with its September quarter results.
Board Meeting Scheduled for October 24
In its exchange filing, the company confirmed that the board of directors will convene on Friday, October 24, to discuss these proposals. The record date for determining eligible shareholders is yet to be announced.
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First-Ever Bonus and Split for Shareholders
This marks the first instance that Bharat Rasayan will consider a bonus issue and stock split, signaling a major development for its shareholders.
Companies typically carry out a stock split to improve liquidity, making shares more affordable and easier to trade. A stock split divides the existing shares into multiple units, which reduces the price per share and increases the total number of shares available in the market.
Understanding Bonus Shares
Similarly, companies issue bonus shares by capitalising on their free reserves, which helps increase the paid-up capital and reduce reserves. These free shares are given to existing shareholders at no additional cost.
Only those investors who buy the shares before the ex-date will be eligible to receive the bonus shares. Anyone purchasing on or after the ex-date will not be entitled to the benefit.
Stock Performance
At present, Bharat Rasayan shares are trading 1.38% higher at ₹9,968.45. Despite today’s rally, the stock has declined 2% so far in 2025, making this announcement a key turning point for investors’ sentiment.
Conclusion
With the upcoming board meeting set for October 24, investors are eagerly awaiting clarity on the bonus ratio and split details. The move, if approved, could enhance liquidity and boost shareholder confidence in Bharat Rasayan’s long-term growth outlook.
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