State-owned infrastructure finance company in the power sector, REC Ltd. will turn ex-bonus later this week. The company plans to issue bonus shares to the eligible shareholders in the ratio of 1:3 and determine the eligible shareholders on the record date. Due to this issue, the PSU will not capitalize the maximum amount 658.30 crores. REC is a subsidiary of Power Finance Corporation (PFC) which is the financial backbone of the country’s power sector.
According to regulatory filings, rec the issue is recommended bonus share Shareholders in the ratio of 1:3, i.e. one bonus equity share 10 each fully paid-up equity shares of Rs. 10 each fully paid-up eligible members by capitalizing the maximum amount 658.30 crore out of the amount deposited in ‘Securities Premium Account’.
The shareholders of the company have approved the bonus issue in the postal ballot held between July 11 and August 9, 2022. The results were declared on 9 August.
The company has fixed August 18 as the record date for determining the eligible members for bonus shares. Due to which the company will become ex-bonus on August 17.
The company plans to complete the bonus issue within two months from the date of approval.
Usually, a company gives bonus shares as an incentive which can be called additional shares on the existing shares of the shareholders. The proportion of bonus shares is decided by the company.
In case of REC, the bonus issue ratio is 1:3 which means one bonus share on the existing three equity shares.
Under bonus issue, there are multiple dates like ‘record date’, ‘ex-date’ and ‘issue date’.
Record date is the cut-off date on which the listed company makes its shareholding book notes. All shareholders holding shares in the company as on the record date shall be eligible for the benefit.
Whereas the ex-bonus date is one day before the record date. Generally, to be eligible for bonus shares, an investor must buy shares of the company at least a day or two before the ex-date.
On BSE, REC is listed under ‘A’ group with settlement type of ‘T+2’.
Under settlement option ‘T+2’, the shares purchased by you will be credited to your demat account after two days.
REC shares closed on Last week on Friday on the BSE 137.10 with a gain of 1.22%. The market cap of the company is approx. 27,076.13 crore.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.