Two small companies Magellanic Cloud Ltd, and Growington Ventures India Ltd, formerly VMV Holidays Ltd, which recommended bonus issue of equity share recently, have set their record dates for this week.
Bonus shares are additional shares that a company grants to its existing shareholders. The basic tenet of bonus shares is that they increase the number of shares issued while maintaining a fixed ratio of shares held to shares outstanding.
So, 1:1 ratio means a shareholder will receive one share for every share she/he currently owns under a 1:1 bonus. For instance, if a person has 10 shares, she/he will receive 10 more. These shares are not purchased by the stockholders at any cost.
Magellanic Cloud, which is engaged in the business of securities trading and investment, has fixed Wednesday, March 22, as the record date for the purpose of determining the members who shall be entitled for allotment of bonus equity shares in the ratio of 3:1, i.e. three equity shares of ₹10 each fully paid up for every one equity share of ₹10 each.
According to trendlyne, the company has given 2 bonuses since October 9, 2018. The ex-bonus date for the stock is Tuesday, March 21.
Growington Ventures India Ltd, which operates as a travel agency in Kolkata, has fixed Saturday, March 25, as the record date for the purpose of determining the members who shall be entitled for allotment of bonus equity shares in the ratio of 24:100, i.e. twenty four bonus equity share of Rs10 each, for every hundred fully paid-up equity share of ₹10 each.
The ex-bonus date for the stock is Friday, March 24.
Vivanza Biosciences Ltd, a small cap company that is focused in commercialising generic pharmaceuticals, offering patients better, safe, and more accessible medicines, has fixed Friday, March, 24 as the record date, to decide on the eligibility of shareholders entitled for sub-division/ split of one equity share of the company having face value of ₹10 each into ten equity shares having nominal value of Re 1 each.
The ex-split date for the stock is similar on Thursday, March 23, according to equitymaster.com.
A stock split occurs when a company issues extra shares to its existing shareholders while reducing the face value of each share by a predetermined ratio. For instance, if the ratio is 1:5, then the shareholders will receive 5 shares for every share they own.