Bharat Rasayan Ltd is set to draw investor attention as its board meets today to discuss proposals for a stock split and bonus issue, alongside the release of its September quarter earnings.
Proposed Corporate Actions
Stock Split
The company is considering a stock split to enhance liquidity and make its shares more accessible. A stock split increases the number of shares while proportionally reducing the face value, allowing investors to buy smaller, more affordable units.
Bonus Issue
Bharat Rasayan is also evaluating a bonus issue, which involves issuing additional shares to existing shareholders at no cost, typically funded from the company’s free reserves. Bonus shares increase paid-up capital and reward long-term investors.
Eligibility and Record Date
The record date for both the stock split and bonus issue is yet to be finalised. Shareholders must hold the stock before the ex-date to be eligible for the bonus shares; purchases on or after the ex-date will not qualify.
Market Implications
If approved, these shareholder-friendly measures could improve market liquidity, broaden retail participation, and enhance investor confidence. The board’s decision, combined with quarterly earnings, makes October 24 a key day for the stock.
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