Nazara Technologies shares approach record date for 1:1 bonus issue, 1:2 stock split. What it means for investors?

Nazara Technologies investors, take note. September 25 is the last day to buy shares for the bonus issue and stock split. Shares will trade ex-bonus and ex-split from September 26. The company announced a 1:1 bonus and a 1:2 stock split. This aims...

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Investors interested in Nazara Technologies' bonus issue and stock split must purchase shares by today, September 25, to qualify.
Investors eyeing Nazara Technologies shares must act today, as September 25 marks the last date to buy shares to qualify for the company’s 1:1 bonus issue and 1:2 stock split. The shares will trade ex-bonus and ex-split from September 26, making today the crucial cut-off for eligibility.

Nazara Technologies, a leading gaming and sports media company, has announced two corporate actions effective this week. The company will first execute a stock split, reducing the face value of its shares from Rs 4 to Rs 2, thereby doubling the number of shares held by investors. This adjustment is aimed at improving liquidity and affordability, allowing a broader set of investors to participate.

In addition, the company will issue bonus shares in a 1:1 ratio, meaning eligible shareholders will receive one bonus share for every share held as of the record date, which is also set for September 26, 2025.


According to corporate data, this is the second bonus issue since June 24, 2022, when Nazara last rewarded shareholders with a similar 1:1 bonus ratio. The stock split, meanwhile, is the first in the company’s history, lowering the face value of shares for the first time.

Both the bonus issue and stock split details have been verified using data from StockEdge, a widely used market analytics platform. Investors must ensure that shares are credited to their demat accounts before the ex-date under the T+1 settlement cycle, meaning trades placed today will make them eligible.

What it means for investors?


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For investors, these corporate actions mean that the number of shares in their demat account will increase significantly, even though the total value of their investment remains the same right after the adjustment.

Let’s break it down step by step with an example. Suppose you currently own 10 shares of Nazara Technologies:

Step 1 – Stock Split:


Nazara is reducing the face value of its shares from Rs 4 to Rs 2. This means each existing share will be split into two shares. If you had 10 shares before the split, you will now have 20 shares after the split.

The price per share will also adjust automatically to roughly half of its pre-split level, so the total value of your investment does not change just because of the split.
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Step 2 – Bonus Issue:


After the split, Nazara is giving a 1:1 bonus, which means you get one free share for every share you already own. Since you now hold 20 shares after the split, you will receive 20 additional shares as a bonus.

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Your final holding becomes 40 shares in total.

So, by the end of both corporate actions, your number of shares has quadrupled — from 10 shares originally to 40 shares now. However, it’s important to note that the price of each share will adjust so that your overall investment value stays the same on the ex-date.

While the number of shares increases, the price per share will adjust proportionately after the split and bonus to ensure that the overall value of the investment remains the same immediately after these corporate actions. This results in better liquidity and a more affordable market price, potentially attracting more participation from retail investors going forward.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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