- A-1 Ltd. plans a 3:1 bonus share issue with a Dec. 31 record date
- Magnanimous Trade & Finance to issue bonus shares at 23:1 ratio by Jan. 2
- Only shareholders in demat accounts by record date qualify for bonus shares
A-1 Ltd. and Magnanimous Trade & Finance Ltd. are set to disburse bonus shares to its stakeholders, in the week ahead. To be eligible for a bonus issue, investors should pay attention to the record date, which is used to determine eligible shareholders.
The company announces this date in advance, and only those who hold the shares in their demat account as of this record date will be eligible for the bonus allotment. 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. The board of A-1 had recommended an issue of bonus shares in the ratio of 3:1 new fully paid-up equity shares. This means that shareholders will receive three new fully paid-up equity shares for every existing share they hold, subject to shareholder approval. The record date for the same is set as Dec. 31.
This marks the company's second bonus issue, the previous one having been announced in August 2021 at a ratio of 3:20.
Similarly, the board of Magnanimous Trade & Finance had recommended an issue of bonus shares in the ratio of 23:1 new fully paid-up equity shares. This means that shareholders will receive 23 new fully paid-up equity shares for every existing share they hold, subject to shareholder approval. The record date for the same is set as Jan. 2.
This marks the company's second bonus issue, the previous one having been announced in May 2013 at a ratio of 3:1.
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