Bonus issues & stock splits: 6 stocks to turn ex-record date this week. Do you own any?

At least six companies have fixed their record dates for bonus issues or stock splits for this week between August 24 (Monday) and August 28 (Friday). Interested investors need to hold shares of these companies in their demat accounts on or before the record date to be eligible for corporate actions. The list remains tentative as more companies may announce record dates for bonus issues and stock splits during the week.

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.

In case of a stock split, the company splits every existing share into multiple shares. While the number of outstanding shares increases, the company’s overall market capitalisation remains unchanged. A lower share price can make the stock more accessible to retail investors, potentially improving participation and trading volumes.

Abhishek Integrations, which specialises in providing electrical and mechanical solutions for airports in India, announced a bonus issue in the ratio of 1:1 earlier this year. This means that eligible shareholders will receive one additional share for every share held in the smallcap company as on the record date, which has been fixed on Monday (August 24).

Mayank Cattle Food also has fixed Monday (August 24) as the record date for its bonus issue in the ratio of 1:1. This means that eligible shareholders will receive one additional share for every share held in the microcap company as on Monday.

Electric equipment maker TD Power Systems has fixed August 24 (Monday) as the record date for its 1:2 stock split. The company in May had announced that its board of directors had considered and approved the plan to split every existing share of the company with a face value of Rs 2 each into two equity shares with a face value of Re 1 each. For example, let’s take an investor who owns 100 shares of the company worth Rs 10 each on the record date, taking the total value of her stock holding to Rs 1,000. After the stock split takes effect, her 100 shares will be split into 200 shares, but the value of each of these shares will reduce to Rs 5. This will keep the total value of the stock holding unchanged at Rs 1,000.
Also read | Stock split alert! Last day to buy multibagger TD Power Systems shares to be eligible for 1:2 split

Cruise liner operator Waterways Leisure Tourism has fixed Wednesday (August 26) as the record date for its 1:10 stock split. The company’s board approved splitting every existing equity share with a face value of Rs 10 into 10 equity shares with a face value of Re 1 each. Following this 1:10 split, an investor holding 10 shares of the company before the record date will see their holding increase to 100 shares, while the price per share will adjust downward proportionally to reflect the lower face value.

Rotographics has declared Friday (August 28) as the record date to determine shareholder eligibility for its 1:5 stock split. Under this corporate action, every existing equity share with a face value of Rs 10 each will be subdivided into 5 equity shares having a face value of Rs 2 each. A shareholder owning 50 shares of the company on the record date will hold 250 shares post-split, with the aggregate value of their investment remaining constant.

Textile and apparel manufacturer Spice Islands Industries Limited has also set Friday (August 28) as the record date for its stock split. The board approved subdividing each equity share of face value Rs 10 into 5 equity shares of face value Rs 2 each. This 1:5 ratio means an investor with 20 equity shares in their demat account prior to the ex-split date will hold 100 shares following the execution, improving overall market liquidity and affordability for retail participants.
Also read | Bonus, dividends & stock splits: Paras Defence, NBCC, MCX among 67 stocks turning ex-record date this week. Do you own any?
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