Patanjali Foods Bonus Issue: When Free Shares Hit Your Demat Account

Patanjali Foods Ltd. shares traded ex-record date on Thursday for its maiden bonus issue. Investors who owned shares as of Sept. 11 are eligible to receive the free shares.

The company will credit the bonus shares on or before Sept. 16, as per a previous regulatory filing. The bonus shares will be open for trade from the next session, i.e., Sept. 17.

The board recommended the issue of bonus shares in the ratio of 2:1 in July. This means two new fully paid-up equity share with a face value of Rs 2 will be given for every one share held by eligible shareholders.

The company will issue 72,50,12,628 bonus equity shares. Patanjali Foods' post-bonus issue paid-up share capital will rise to 1,08,75,18,942 equity shares with a face value of Rs 2 each, aggregating Rs 217.5 crore.

Under India's T+1 settlement cycle, investors must buy the shares at least one trading day before the record date to be eligible. This means that purchases made on the record date itself will not reflect in the demat account in time to be eligible for the bonus shares.