PremiumA bonus share issuance is the declaration of additional or free shares to a company's existing shareholders distributed as a portion of its earnings with its shareholders rather than paying dividends. As an instance, if the ratio of bonus shares is 5:1, then eligible shareholders whose names appear on the company's book of record on the record date will get 5 additional shares for every 1 equity share they held as of the record date which in turns makes your total share count to 6 instead of 1. The ex-date is one day before the record date, which is a cut-off date that the firm determines, and shareholders should hold shares of the company on this day to be eligible for bonus shares. In order to receive the shares credited into their Demat account before the record day and be eligible for the bonus shares, investors need to buy the stock 1-day prior to the record date since India adopts the T+1 settlement cycle. Therefore, the two stocks Nykaa and Punit Commercials will trade ex-bonus the next week at a bonus ratio of 5:1, which traders need to be aware of.
The bonus issue of equity shares in a 5:1 Ratio was approved by the Board at its meeting on October 3, 2022. And for the purpose of determining the shareholders eligible for bonus equity shares, the Board of the Company has set the Record Date for Friday, November 11, 2022. As a result, on November 10 the stock will trade ex-bonus, according to BSE. Shares of the company went public on the BSE and NSE stock exchanges in November of last year. Shares of Nykaa fell 1.70% on Friday and ended the session at ₹1,108.95 apiece. During its last trading session, the stock recorded a total volume of 1,145,402 shares compared to the 20-Day average volume of 1,995,142 shares.
The consumer discretionary sector is where Punit Commercials Ltd., a small-cap company with a market valuation of Rs. 1.23 Cr., operates. The company produces and sells products made of diamonds. At its meeting on October 4, 2022, the board of directors of Punit Commercials Limited considered issuing bonus shares at a 5:1 ratio. The record date has been set as Wednesday, November 9, 2022 in order to determine shareholder eligibility and right to receive bonus shares. According to information on BSE, Punit Commercials' shares will commence trading ex-bonus on November 9, 2022.
The total amount of securities proposed to be issued as bonus shares would be 12,00,000 fully paid-up equity shares of Rs. 10 apiece, or Rs. 1,20,00,000. The allocation or credit of these bonus shares is estimated to commence on or before 03.12.2022. On October 10, 2022, Punit Commercials' stock reached a closing price of Rs. 51.25 a piece. For the quarter that ended in June 2022, the corporation reported a promoter shareholding of 73.74% and a public stake of 26.26%.