Bonus Stock: This FMCG stock finalises allotment of bonus, split shares - Check details

Bonus Stock: Sarveshwar Foods also subdivided or split the face value of equity shares from Rs 10 to Re 1 each. The split came into effect just ahead of the bonus.

The bonus has been issued in the ratio of 2:1. Photo credit: File

Bonus Stock: Sarveshwar Foods, an agri products company, has informed exchanges about the allotment of bonus shares to the eligible shareholders post execution of the corporate action. As per the Bombay Stock Exchange (BSE), the FMCG (fast-moving consumer goods) stock turned ex-date for the bonus issuance on Friday (September 15). The bonus issue was considered post-sub-division or split of the equity shares on the same day.

The bonus has been issued in the ratio of 2:1, meaning two additional equity shares have been issued for every equity share having a nominal value of Re 1 each.

Besides, the company also subdivided or split the face value of equity shares from Rs 10 to Re 1 each. The split came into effect just ahead of the bonus.

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Accordingly, each equity share having a face value of Rs 10 was split into 10 equity shares of the face value of Re 1 each and then a bonus was issued in the ratio of 2:1.

"Allotted 65,25,44,000 Equity shares of Re 1 each as fully paid Bonus Shares to the existing shareholders of the company as on record date i.e. September 15, 2023 in the ratio of 2:1 i.e. two equity shares for every one equity shares having a face value of Re 1 each," the company said in a regulatory filing.

"Post the above allotment, the paid-up equity share capital of the company would stand at Rs 97,88,16,000 divided into 97,88,16,000 equity shares of Re 1 each," it added.

The rationale behind the split and bonus is to enhance the liquidity in the stock and make the stock price affordable for small investors and traders. When a stock trades ex-date for split and bonus, the market price is adjusted in the declared ratio.

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