“The Board of the Company recommended the issue of fully paid-up bonus equity shares of Rs 2 each in the ratio of 1:1 held by the members of the company as on the record date,” the company said in a filing.
The record date for the same will be fixed by the Board soon. The bonus issue is subject to the approval of shareholders in an EGM (extraordinary general meeting) of the company.
The EGM is convened on January 18 to seek shareholders’ approval. The proposed bonus issue will be completed within 2 months from the date of board approval on or before February 21.
A company issues bonus shares for their shareholders to increase the liquidity of the stock and to decrease its stock price and make it affordable for investors.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra cost to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.
All those who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.
“We are committed to maximizing shareholder value and through the issue of bonus shares, we are yet again rewarding our shareholders, after the recent buyback of shares,” said Chairman Navin Suchanti.
Sinclairs Hotels had also recently done a buyback of 15,20,000 equity shares of Rs 2 each at a price of Rs 200 per share amounting to Rs 30 crore. The buyback of shares was completed on October 23 this year.
On Friday, the company’s shares were trading 1.17% lower at Rs 206.8 on the NSE. The shares have nearly doubled this year on a year-to-date basis.
