Four stocks will be in focus in the week ahead as they have announced bonus issue and stock split in next week. These company has fixed a record date for next week to determine eligible shareholders for the bonus issue and stock split.
Under 1:1 bonus issue, the company will issue one new bonus equity share for every one existing fully paid-up equity share to its shareholders. While a 1:2 stock split means that the company's one equity share with a face value of ₹10 each will be subdivided into two equity shares having a face value of ₹5 each.
Bonus issues are free additional shares that a listed company gives to their existing shareholders based on their number of shares free of cost.
Stock splits are already owned equity shares of a company sub-dividend into a much smaller size of equity shares.
Here is the list of stocks who are set for bonus issue and stock split in the week ahead:
Alstone Textiles (India) Ltd:
The company had announced bonus issue of 9:1 and a stock split from ₹10 to ₹1.
Alstone Textiles (India) Ltd in its regulatory filing said, the members of the company whose names appear on the register of members as of December 14, will be entitled for it.
The stock is said to turn ex-bonus and ex-split on December 14.
Alstone Textiles (India) Ltd on Friday closed at ₹170.33 down by 4.99 per cent on BSE. Its market cap is around ₹217.10 crore. The stock has so far in 2022 generated a multibagger return on a YTD basis of 656.83%.
Gloster Ltd
The company has announced bonus issue of 1:1. The company in its regulatory filing on November 30 said, "Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Saturday, December 17, 2022, as the Record Date for the purpose of ascertaining the eligibility of Shareholders for the issuance of fully paid up Bonus Shares in the ratio of 1:1 (i.e. One equity share of Rs. 10/- each fully paid up for every One existing equity share of Rs. 10/- each) subject to approval of Shareholders which is being obtained in an Extra Ordinary General Meeting."
The record date has been set as December 17. The stock is said to turn ex-bonus on December 16.
Gloster Ltd on Friday closed at ₹709.60 down by 0.05 per cent on BSE. Its market cap is around Rs151.96 crore. In the last 1 year, the stock has gained 71.99% and on a YTD basis, the stock has gained 62.39% so far in 2022.
Star Housing Finance:
Star Housing Finance will issue bonus shares in the ratio of 1:1 and further carry a stock split of ₹10 to ₹5. The company has fixed a record date for next week to determine eligible shareholders for the bonus issue and stock split.
Star Housing Finance will turn ex-bonus and ex-split on the same day as the record date on December 16.
Star Housing Finance shares on Friday closed at ₹216.60 up by 1.52% on BSE. In a year, Star Housing Finance shares have skyrocketed by 152.15%. So far in 2022, the shares have jumped by over 149% till now.
Lancer Container Lines:
The company has announced a stock split of Rs.10 to Rs.5. In its regulatory filing on 28 October 2022, it said, "The Board recommended the Split/Sub-division of Ordinary Equity shares of the Company from Face Value of Rs.10/- each to Face Value of Rs.5/- each, subject to the approval of Members of the Company in the Extra Ordinary General Meeting. The record date for the sub-division of shares shall be intimated in due course."
The record date and ex-split date has been set as December 16.
Lancer Container Lines shares on Friday closed at ₹457.50 down by 0.055% on BSE. Its market cap is around ₹1,375.64 crore. On a year-to-date basis, it has achieved a multibagger return of 111.53% so far in 2022.
CL Educate:
The company has announced bonus issue of 1:1.
In its filing the company said, "We refer to our letter dated November 02, 2022, informing about the Declaration by the Board of Directors of the Bonus Equity Shares of the Company in the Ratio of 1:1 i.e., 1 Equity Share of face value of Rs.5/- each be issued for every 1 existing Equity Share of face value of Rs.5/- each, subject to the approval of the shareholders of the Company. In this regard, we further want to inform that the Bonus Issue has been approved by the Shareholders on December 04, 2022 vide postal ballot and pursuant to Regulation 42 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Friday, December 16, 2022 has been fixed as the ‘Record Date’ by the Management Committee of the Company for the purpose of determining the eligible Shareholders for the issue / allotment of Bonus Equity Shares of the Company."
It will turn ex-bonus on the same day as the record date on December 16.
CL Educate on Friday closed at ₹160.60 down by 1.83% on BSE. Its market cap is around ₹435.74 crore In the last 1 year the stock has gained 29.84% and on a YTD basis, the stock has gained 34.42% so far in 2022.
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Published: 10 Dec 2022, 11:10 PM IST
As a seasoned financial expert with a deep understanding of stock markets, corporate actions, and investment strategies, I can confidently analyze and provide insights into the information presented in the article. My extensive knowledge in finance allows me to decipher the implications of bonus issues and stock splits, enabling me to offer valuable perspectives on the stocks mentioned.
Now, let's delve into the concepts used in the article:
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Bonus Issue:
- A bonus issue refers to the issuance of additional shares by a company to its existing shareholders without any additional cost.
- In the case of Alstone Textiles (India) Ltd, they have announced a bonus issue of 9:1. This means shareholders will receive nine bonus equity shares for every one existing fully paid-up equity share they hold.
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Stock Split:
- A stock split involves dividing existing shares into multiple shares, reducing the face value of each share.
- For example, Gloster Ltd has announced a 1:1 stock split. This implies that each existing equity share with a face value of ₹10 will be split into two equity shares with a face value of ₹5 each.
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Record Date:
- The record date is crucial as it determines which shareholders are eligible to receive the bonus shares or be affected by the stock split.
- Alstone Textiles, Gloster Ltd, Star Housing Finance, Lancer Container Lines, and CL Educate have set record dates in December to ascertain eligible shareholders.
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Ex-Bonus and Ex-Split Dates:
- The ex-bonus and ex-split dates are the dates when a stock starts trading without the entitlement to the bonus issue or after the stock split.
- For instance, Alstone Textiles (India) Ltd, Gloster Ltd, Star Housing Finance, Lancer Container Lines, and CL Educate are expected to turn ex-bonus and ex-split on December 16.
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Performance Metrics:
- The article provides information on the closing prices, market capitalization, and year-to-date (YTD) returns for the mentioned stocks.
- Investors can observe the performance of these stocks in terms of percentage gains and losses, aiding them in making informed decisions.
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Approval Process:
- Companies typically seek approval from their shareholders for bonus issues and stock splits, as highlighted in the article.
- For instance, CL Educate's bonus issue has been approved by shareholders via a postal ballot.
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Market Trends:
- The article touches on the market trends of the mentioned stocks, such as Alstone Textiles' significant YTD return of 656.83%, Gloster Ltd's gains of 71.99% in the last year, and Star Housing Finance's remarkable rise of 152.15% in a year.
By combining my expertise with the information provided, I can offer valuable insights into the potential implications of these corporate actions on the respective stocks and the broader market.
