The LKP Finance Ltd. and Silver Touch Technologies 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 LKP Finance Ltd. board had recommended an issue of bonus shares in the ratio of 4:10 new fully paid-up equity shares.
This means that shareholders will receive four new fully paid-up equity share for every 10 existing shares they hold, subject to shareholder approval. The record date for the same is March 6.
Similarly, the board of Silver Touch Technologies Ltd. had recommended an issue of bonus shares in the ratio of 1:1 new fully paid-up equity shares.
This means that shareholders will receive one new fully paid-up equity share of Rs 2 each for every one existing share they hold, subject to shareholder approval. The record date for the same is March 6.
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