A-1 Announces Record Date For 3:1 Bonus Issue, 1:10 Stock Split — Check Details
Investors eyeing bonus issue, stock split and other corporate action benefits must closely monitor record dates to ensure eligibility.
A-1 Ltd. has set Dec. 31 as the record date for its 3:1 bonus issue and 1:10 stock split, as per an exchange filing on Monday.
The record date will determine the eligibility of the shareholders for bonus issue of equity shares in proportion of 3 equity shares for every existing 1 equity share of Rs 10 each; along with for the purpose of sub-division or split of each fully paid-up equity share with face value of Rs 10 into 10 fully paid-up equity shares having face value of Re 1.
Investors eyeing bonus issues, stock split and other corporate action benefits must closely monitor record dates to ensure eligibility.
To be eligible for these corporate actions, investors should note the record date that determines shareholder eligibility. Buying shares on the record date itself won’t qualify, as the ownership won’t be reflected in time during trade.
With India following the T+1 settlement cycle, investors need to purchase the stock at least one trading day before the record date to be eligible.
A bonus issue is the distribution of free shares to eligible shareholders. The share price adjusts in the ratio of the bonus allotment at the ex-date. However, this does not affect the overall value of holdings.
A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share. This typically enhances liquidity as the stock price adjusts accordingly.
While the number of shares increases, the total investment value remains unchanged. For instance, in the case of A-1, one equity share with a face value of Rs 10 will be split into 10 equity shares with Re 1 as the face value.
A-1 Share Price
A-1's scrip settled 5% higher at Rs 1,957.25 on Monday. This compares to a 0.08% decline in the Nifty index.
