Two small-cap companies, KPI Green Energy Ltd and Goldstar Power Ltd, which declared bonus issue of equity shares recently, have set their record dates this week.
A company issues bonus shares—additional shares—to its existing shareholders. Bonus shares operate under the fundamental premise that they increase the number of shares issued while keeping a fixed ratio of shares held to shares outstanding.
For instance, 1:1 ratio means a shareholder will receive one share for every share she/he currently owns.
The bonus will be issued to all shareholders whose names are recorded in the company's shareholder records as of the end of the record date.
KPI Green Energy Ltd, a solar power generating company, has fixed Wednesday, January 18, as the record date for ascertaining the eligibility of shareholders for bonus shares in 1:1 ratio – one new fully paid-up equity share of ₹10 each for every one fully paid-up equity share of ₹10 each held.
The company's ex-bonus date is similar to its record date.
Goldstar Power Ltd, a battery manufacturing company, has fixed Saturday, January 21, as the record date for ascertaining the eligibility of shareholders entitled to bonus shares in 4:5 ratio. The company's ex-bonus date is January 20.
Stock Split
Small-cap company Deep Diamond India Ltd, engaged in manufacturing, designing and selling jewellery of gold set with diamonds, has fixed Friday, January 20, as the record date for the purpose of sub-division/split of the face value of the equity shares of the company from existing ₹10 per share paid up to ₹1 per share.
According to trendlyne data, the company had last split the face value of its shares from ₹10 to ₹1 in 2016.
Similarly, Goldstar Power Ltd has fixed Friday, January 20, as the record date for the purpose of sub-division/split of the face value of the equity shares of the company from existing ₹10 per share paid up to ₹1 per share.
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 shareholder will receive 5 shares for every share they own.
