The board of the Bombay Stock Exchange (BSE) limited approved a 2:1 bonus share issue, according to the filing on Sunday. As per the filing, the BSE will serve 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 its filing.
Moreover, this is the second time when BSE announced a bonus share issue since listing in 2017. However, the record date for the latest bonus issue has not been specified yet. According to 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 the company before the ex-date will be eligible for the bonus shares.
BSE Bonus Share: What Else?
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 the 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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