Bonus Shares Record Date This Week: HDFC Bank, Karur Vysya Bank Among Others

HDFC Bank Ltd., Karur Vysya Bank Ltd., Kretto Syscon Ltd. and DMR Hydroengineering & Infrastructures Ltd are four companies that are all set to disburse bonus shares to their stakeholders.

What is a Bonus Issue?

A bonus issue is an issue of free shares to existing shareholders of a company. The number of shares issued as a bonus is usually in a fixed ratio to the number of shares held by the shareholder.

Record Date: What You Need to Know

To be eligible for a bonus issue, investors should pay attention to the record date, which is used to determine eligible shareholders. The company announces this date in advance, and only those who hold the shares in their demat account as of this record date will be eligible for the bonus allotment.

Under India’s T+1 settlement cycle, investors must buy the shares at least one trading day before the record date to be eligible. This means that purchases made on the record date itself will not reflect in the demat account in time.

HDFC Bank Ltd: Bonus Shares in the Ratio of 1:1

The board of HDFC Bank Ltd had recommended an issue of bonus shares in the ratio of 1:1 new fully paid-up equity shares. The record date for the same is set as Aug. 26. This means that shareholders will receive one new fully paid-up equity share for every existing share they hold, subject to shareholder approval.

Kretto Syscon Ltd: Bonus Shares in the Ratio of 2:25

The board of Kretto Syscon Ltd. had recommended an issue of bonus shares in the ratio of 2:25. The record date for the same is set as Aug. 25. This means that shareholders will receive two new fully paid-up equity shares for every twenty-five existing shares they hold, subject to shareholder approval.

Karur Vysya Bank Ltd: Bonus Shares in the Ratio of 1:5

Karur Vysya Bank Ltd. had recommended an issue of bonus shares in the ratio of 1:5. The record date for the same is set as Aug. 26. This means that shareholders will receive one new fully paid-up equity share for every five existing shares they hold, subject to shareholder approval.

DMR Hydroengineering & Infrastructures Ltd: Bonus Shares in the Ratio of 8:5

DMR Hydroengineering & Infrastructures Ltd has recommended bonus shares in the ratio of 8:5 with record date set at Aug. 28. This means that shareholders will receive eight new fully paid-up equity shares for every five existing shares they hold, subject to shareholder approval.

How to Take Advantage of Bonus Issues

Bonus issues can be a great way for investors to increase their holdings in a company without having to pay any additional money. However, it’s essential to keep in mind that the record date is crucial in determining eligibility for bonus shares.

Investors should also be aware that the issue of bonus shares does not affect the overall value of their investment. The total value of their investment remains the same, but the number of shares they hold increases.

Conclusion

In conclusion, HDFC Bank, Karur Vysya Bank, Kretto Syscon, and DMR Hydroengineering are set to disburse bonus shares to stakeholders. Investors should be aware of the record dates and ratios for these companies to take advantage of the bonus issue. It’s also essential to understand the concept of bonus issues and how they can impact your investment portfolio.

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