Univastu India Ltd, an engineering, procurement, and construction (EPC) firm specializing in civil infrastructure projects, has announced a 2:1 bonus issue for its shareholders. The move is seen as a shareholder-friendly step aimed at improving liquidity and enhancing retail participation in the company’s stock.
Details of the 2:1 Bonus Issue
Shareholders holding Univastu India shares at the end of trading on October 12, 2023, will be eligible to receive bonus shares. This effectively triples their shareholding — for every 100 shares held, investors will receive 200 additional shares, without changing the total value of their investment.
| Aspect | Details |
| Bonus Ratio | 2:1 (Two new shares for every one held) |
| Eligibility Cut-off | End of trading on October 12, 2023 |
| Record Date | October 13, 2023 |
| Ex-Date | October 13, 2023 |
While the number of shares increases post-bonus, the share price will adjust proportionately, keeping the company’s overall market capitalization unchanged.
What It Means for Investors
The 2:1 bonus issue is expected to boost stock liquidity and make Univastu India’s shares more affordable for retail investors. Bonus issues are often interpreted as a sign of management confidence in the company’s future prospects, signaling strong fundamentals and a positive outlook.
Bonus Issue History
This is Univastu India’s second bonus issue. The company previously announced a 1:1 bonus in December 2019, reinforcing its consistent record of rewarding shareholders through value-accretive corporate actions.
Summary
Univastu India’s 2:1 bonus issue entitles shareholders to receive two additional shares for every one share held, with eligibility determined by the record date of October 13, 2023. The move aims to enhance stock liquidity and broaden investor accessibility, following the company’s earlier 1:1 bonus issue in 2019.
Disclaimer:
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