- Nazara Technologies offers a 1:1 bonus share issue for shareholders on record date Sept 26
- Investors must buy shares by Sept 25 to be eligible for the bonus under T+1 settlement rules
- Bonus shares will be credited on Sept 29 and available for trading from Sept 30
Nazara Technologies Ltd. will be on the market radar on Thursday as it marks the last session for investors to buy shares to qualify for the bonus issue of shares and stock split ahead of the record date.
The company has announced a 1:1 bonus issue. One fully paid-up equity share of face value of Rs 2 each will be issued to investors for every one held.
The company has fixed Friday, Sept. 26, as the record date for the purpose of determining the equity shareholders eligible for bonus equity shares.
Only those investors who hold Nazara Tech 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 free bonus shares will be credited to shareholders on Monday, Sept. 29. They will be notified of the credit through the depository firm. Consequently, the bonus shares will be available for trading from the next session, Sept. 30.
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.
Nazara Tech will split its stock from the face value of Rs 4 per share to Rs 2 per share, with an effective record date of Sept. 26. Buying shares on the record date itself won't qualify, as the ownership won't be reflected in time during trade.
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.
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