Corporate action this week: Nestle India ex-split, Allcargo Logistics ex-bonus and more
Shares of Indian Link Chain Manufacturer (Rs 100 to Rs 10), Nestle India (Rs 10 to Rs 1), 7NR Retail (Rs 1 to Rs 10) and Pearl Global Industries (Rs 10 to Rs 5) on Wednesday, January 3 ). It is scheduled to be distributed on Friday, January 5th.
Stock splits are usually done to increase the liquidity of a stock in the market. On the day before the split, investors who hold stocks until the record date will receive new shares in their demat accounts, and the stock price will be adjusted according to the split ratio.
Meanwhile, LA TIM Metal & Industries’ paid-in capital increase base date was confirmed as Tuesday, January 2, 2024.
A rights issue is a common form of corporate action in which a company invites existing shareholders to purchase additional shares of the company at a discounted price within a given period (cutoff date).
However, as an existing shareholder of the company, you are under no obligation to purchase additional shares. If the company believes its business is thriving, it can apply for a paid-in capital increase to increase its stake in the company.
Meanwhile, Allcargo Logistics (3:1) on Tuesday and M Lakhamsi Industries (1:50) on Friday are scheduled for pre-bonus trading. The company issues free capital to shareholders to increase stock liquidity. The goal is to lower the stock price to provide a reasonable price to investors.
Bonus shares are paid in full as additional shares issued by the company to existing shareholders. When a company issues bonus shares, shareholders do not have to incur additional costs to obtain them. The number of bonus shares you receive depends on how many shares of the company you already own.
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