Bonus issue alert! Last day to buy this Rakesh Jhunjhunwala-backed smallcap pharma stock for 1:1 bonus bonanza

Smallcap pharma firm Concord Biotech, which was backed by late ace investor Rakesh Jhunjhunwala, has fixed November 4 (Wednesday) as the record date for its 1:1 bonus issue, making today the last day for investors to buy the stock and become eligible for the bonus shares.

Only those shareholders who hold Concord Biotech shares in their demat accounts as of Wednesday will be eligible to receive the bonus shares. As per Sebi's T+1 settlement cycle, investors must buy the company's shares at least one trading day before the record date for them to be credited to their demat accounts and qualify for the bonus issue. This makes today the last day to buy the stock to be eligible for the bonus shares.

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All about Concord Biotech’s bonus issue

Concord Biotech announced in September that its board of directors considered and approved the issuance of bonus shares in the ratio of 1:1 by capitalising the company’s share premium account. The company would issue 10.46 crore bonus shares with a face value of Re 1 each as part of the corporate action.

Later in October, Concord Biotech fixed November 4 as the record date for the purpose of determining the eligibility of shareholders set to receive the bonus shares, which will be allotted by November 5 (Thursday).

A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio. A 1:1 bonus issue means that eligible shareholders will get one bonus share for every single share held in the company as on the record date.

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Rakesh Jhunjhunwala's investment in Concord Biotech

Ace investor Rakesh Jhunjhunwala, often called India's Warren Buffet, first invested in Concord Biotech in 2004 and later helped the company's founder in buying back the company from pharma major Mylan in 2009. His investment firm RARE Enterprises stayed invested in the company during its Rs 1,551 crore IPO in 2023.

The son of an income tax officer, Jhunjhunwala started making his mark on Dalal Street in 1985, when the BSE Sensex was young, at a mere 150 level. Starting his career with a humble Rs 5,000, Jhunjhunwala built a multi-billion dollar portfolio on Dalal Street. A qualified Chartered Accountant, he invested in both his own name and his wife, Rekha Jhunjhunwala. He favoured stocks in the finance, tech, retail and pharma sectors.

He passed away at the age of 62 on August 14, 2022, following a cardiac arrest. He was suffering from multiple health problems related to the heart, diabetes and kidney, according to sources.

Rakesh Jhunjhunwala and associates held around 24% stake in Concord Biotech as of the end of the September quarter of FY27, according to data on Trendlyne.

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Concord Biotech share price

Concord Biotech shares have fallen more than 11% in one week and over 15% in one month, with the stock overall being down nearly 13% in 2026 so far.

The shares of the company have dropped 19% in the past one year, but delivered positive returns of a little over 3% in three years. It has a market capitalisation of around Rs 12,172 crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.