Small-cap company Evans Electric Ltd, which declared bonus issue of equity shares recently, has set Friday, February 10, as its record date for the purpose of determining eligibility of shareholders.
Bonus shares will be issued to all shareholders whose names are recorded in the company's shareholder records as of the end of the record date.
Basically, 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.
As per the company's exchange filing, the company has issued bonus shares in the ratio 1:1 i.e. one equity share of ₹10 for every one equity share of ₹10, for which the company obtained shareholders’ approval on January 25.
Evans Electric is engaged in heavy electro-mechanical repairs. The company's primary activity is the rendering of specialised technical services by way of processing, repairing, rewinding, converting, and redesigning of electrical equipment, including motors, generators, and transformers.
The company's ex-bonus date is similar to its record date.
