KPI Green Energy, Scenic Exports India, and Garware Technical Fibers are in the eye of investors in today’s stock market. The reason for this is that these companies are in ex-bonus trading. All three companies have announced the issue of bonus shares to their shareholders, and their record date has been fixed for Friday, January 3.
Bonus details: Who is giving what?
1. KPI Green Energy
- Ratio: 1:2 (one bonus share for every two equity shares).
- KPI Green has made this announcement to provide additional benefits to existing shareholders.
2. Scenic Exports India
- Ratio: 1:5 (one bonus share for every five equity shares).
- This company is working in the gems and jewelery sector and is trying to retain investors through bonuses.
3. Garware Technical Fibers
- Ratio: 4:1 (four bonus shares for every one share).
- The company has presented this decision as an important opportunity for its shareholders.
Performance of these companies in the stock market
Scenic Exports India
- Opening price: Rs 1,226.40 (above previous close Rs 1,168).
- Upper Circuit: Rs 1,226.40.
- 10 am: Shares were trading at Rs 1,214.50, up 4%.
Garware Technical Fibers
- Opening price: Rs 962.95 (above previous close Rs 929.15).
- However, the stock declined and fell 4% to Rs 891.
- 10 am: Trading at Rs 899.50, down 3.35%.
KPI Green Energy
- Opening price: Rs 583.60 (above previous close Rs 572.40).
- During the day, the stock fell 2% to Rs 558.60.
- 10 am: Trading at Rs 566, down 1%.
Bonus Share: Its Meaning and Importance
Bonus shares are additional shares that a company issues to its existing shareholders for free. It is issued:
- Depending on the ratio: like 1:1, 1:2, 2:3.
- How it works: The ratio shows how many new shares existing shareholders will receive for each share they own.
- Benefit:
- It shows the financial stability of the company.
- The stake of existing shareholders increases.
- This increases the attractiveness of the company in the market.
