Kitex Garments among 3 stocks to trade ex-bonus tomorrow. Do you own?

Shares of Kitex Garments and 2 other stocks will remain in focus today as these companies had fixed January 17 as the record date for determining shareholder eligibility for the purpose of their bonus share issue.

Since the record date and ex-date are the same in most cases, today is the last day to buy the shares of the company for a shareholder to be eligible for the bonus share issue.

Following are the 3 companies that have record date for bonus share issue tomorrow:


Kitex Garments: The company has declared a bonus issue in the ratio of 2:1. This means shareholders will receive two additional shares for every share they currently hold.

Kore Digital: Kore Digital has also announced a bonus issue of 2:1, mirroring the ratio declared by Kitex Garments.

Sattva Sukun Lifecare: Sattva Sukun Lifecare declared a bonus issue in the ratio of 3:5. This means shareholders will receive three additional shares for every five shares they currently hold.

A bonus share issue, also known as a scrip issue or capitalization issue, is when a company distributes additional shares to its existing shareholders for free. It's like a stock split, but instead of splitting existing shares into more shares, the company creates new shares and gives them to existing shareholders in proportion to their holdings.

Bonus issues increase the number of outstanding shares for the companies while proportionally reducing the share price. However, the overall market capitalization of the companies is not directly affected by the bonus issue itself.

Also read: Some more pain left in mid and smallcap companies; largecap valuations attractive: Sampath Reddy


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