te Split and bonus share: Agri products company declares twin corporate actions, fixes record date | Zee Business

Split and bonus share: Agri products company declares twin corporate actions, fixes record date

The bonus will be issued in the ratio of 2:1, meaning two bonus equity shares will be issued for every one equity shares having a face value of Re 1.

Split and bonus share: Agri products company declares twin corporate actions, fixes record date
The company has fixed September 5 as the record date for the purpose of the split and bonus. Photo credit: Pixabay

Agricultural products company Sarveshwar Foods has announced twin corporation actions - sub-division (split) and bonus for its shareholders. According to an exchange filing by the company, the board has also fixed the record date for ascertaining the eligibility of shareholders for the split and bonus.

The filing said that the face value of equity shares will be sub-divided from Rs 10 to Re 1 each. "Sub-division of face value of equity shares of nominal value of Rs 10 each shall stand sub-divided into 10 equity shares of nominal value of Re 1each fully paid-up," the filing dated August 24 said.

The bonus share will be issued after the split. The bonus will be issued in the ratio of 2:1, meaning two bonus equity shares will be issued for every one equity shares having a face value of Re 1.

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"Ascertaining the eligibility of security holders entitled for issuance of bonus equity shares of the company in the ratio of 2:1 i.e. 2 (two) equity shares for every 1 (one) equity shares having a face value of Re 1 (considering the post-sub-division/split of face value of equity shares)," the filing added.

The company has fixed September 5 as the record date for the purpose of the split and bonus, according to the company filing.

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

As a result, the total number of outstanding shares in the secondary market is increased and thus helps the company to widen its shareholders base.

Shares of Sarveshwar Foods finished nearly 5 per cent higher on Friday at Rs 130.75 apiece on BSE.

Written By: ZeeBiz WebTeam
Updated: Sun, Aug 27, 2023
08:59 pm
New Delhi, ZeeBiz WebDesk
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