Mumbai (Maharashtra) [India], March 30 : The board of Indian stock exchange BSE limited approved a 2:1 bonus share issue, as per the filing on Sunday.
As per the announcement, the BSE will grant two shares for every one held by shareholders as of the record date.
"Issue of Bonus equity shares in the ratio 2:1 i.e. 2 (Two) equity shares of Rs 2 each for every 1 (One) full paid-up equity share of Rs 2 each held by the Shareholders of the Company as on the Record Date, subject to the approval of Shareholders through Postal Ballot," BSE said in a filing.
This marks the second instance when BSE has announce the bonus share issue after its listing in in 2017. The record date is not determined for the latest bonus issue.
As per the filing bonus shares will be issued from and out of Capital Redemption Reserves and General Reserve as available on December 31, 2024.
According to the filing only investors holding shares of thecompany before the ex-date will be eligible for the bonus shares.
Bonus shares are usually issued by companies in order to increase their earnings per share (EPS), extend their paid-up capital, and take advantage of free reserves while lowering reserves. Existing stockholders receive these shares at no further expense.
According to publically available information, the exchange announced a dividend of Rs 12 per share in May 2023, with the ex-dividend date on August 4, 2023. Additionally, in June 2024, BSE announced a final dividend of Rs 15 per share, with the ex-dividend date on June 14, 2024.
Established in 1875, BSE (formerly known as Bombay Stock Exchange), is Asia's first & the Fastest Stock Exchange in world with the speed of 6 micro seconds and one of India's leading exchange groups.
Over the past 143 years, BSE has facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising platform. Popularly known as BSE, the bourse was established as 'The Native Share & Stock Brokers' Association' in 1875. In 2017 BSE become the 1st listed stock exchange of India.
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