Orient Technologies Ltd. will be on the market radar on Friday as it marks the last session for investors to buy shares to qualify for the bonus issue of shares ahead of the record date.
The IT company will give one free bonus equity share of face value of Rs 1 each for every 10 fully paid-up equity share held. The record date for determining the eligible shareholders to receive bonus equity shares is Monday, Jan. 5.
Only those investors who hold Orient Technologies 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 bonus issue will be carried out by capitalising Rs 4.16 crore from the securities premium account, it said.
The company said the bonus issue is intended to increase equity liquidity and broaden shareholder participation. The company also added that the bonus shares will rank pari passu with existing fully paid-up equity shares and will be credited in dematerialised form to eligible shareholders.
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.
Orient Technologies Shares Rally After Shareholders Approve Bonus Issue — Check Ratio, Record Date UpdatesWatch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
