Latest News
- KPI Green Energy shares traded ex-bonus on January 3, 2025, leading to a price adjustment of approximately 33%. [Source]
- The company issued bonus shares in a 1:2 ratio, granting one additional share for every two shares held. [Source]
- This marks the third consecutive year of bonus issues by KPI Green Energy. [Source]
- Post-adjustment, the stock opened at ₹579 on the NSE, down from the previous close of ₹857.75. [Source]
Table of Contents
Understanding Bonus Issues
Bonus shares are additional shares that a company distributes to its existing shareholders without any extra cost. This distribution is typically in a specified ratio, such as 1:2, meaning one bonus share for every two shares held. The primary objective is to increase the liquidity of the shares and make them more affordable for retail investors.
KPI Green Energy’s 2025 Bonus Issue
In January 2025, KPI Green Energy announced a bonus issue in the ratio of 1:2, granting one bonus share for every two shares held. This initiative is part of the company’s strategy to reward its shareholders and enhance the stock’s liquidity. Notably, this is the third consecutive year that KPI Green Energy has issued bonus shares, reflecting its consistent growth and shareholder-friendly approach. [Source]
Impact on Share Price
On the ex-bonus date, January 3, 2025, the share price of KPI Green Energy adjusted to reflect the bonus issue. The stock opened at ₹579 on the NSE, a decrease from the previous close of ₹857.75, representing a 33% adjustment corresponding to the 1:2 bonus ratio. Such adjustments are standard practice, as the market capitalization remains unchanged while the number of outstanding shares increases.
Step-by-Step Guide for Shareholders
As a shareholder of KPI Green Energy, it’s essential to understand the process and implications of the recent 1:2 bonus issue. Here’s a concise guide to help you navigate this corporate action:
- Eligibility Check: Ensure you were a shareholder on the record date, January 3, 2025. Holding shares on this date qualifies you for the bonus issue. [Source]
- Understanding the Bonus Ratio: The 1:2 ratio means you’ll receive one additional share for every two shares you own. For example, if you held 100 shares, you’d receive an extra 50 shares.
- Ex-Date Awareness: The ex-date was also January 3, 2025. On this date, the stock price adjusted to reflect the bonus issue, which may have appeared as a decline in value.
- Receiving Bonus Shares: The bonus shares will be credited to your demat account. This process may take a few days post the record date. Monitor your account to confirm the credit.
- Trading Bonus Shares: Once credited, the bonus shares will be available for trading. Ensure you verify their availability in your account before initiating any transactions.
Important Notice
It’s crucial to note that while the number of shares you hold increases, the overall value of your investment remains the same immediately after the bonus issue due to the proportional adjustment in share price.
Frequently Asked Questions
What is a bonus share?
A bonus is an additional share given to existing shareholders without any extra cost, based upon the number of shares a shareholder owns. It’s a way for companies to distribute profits back to shareholders through additional shares.
How does the 1:2 bonus issue affect my shareholding?
In a 1:2 bonus issue, for every two shares you hold, you receive one additional share. This increases the total number of shares you own, but the overall value of your investment remains the same immediately after the bonus issue due to the adjustment in share price.
When will the bonus shares be credited to my account?
Bonus shares are typically credited to your demat account within a few days after the record date. However, the exact timeline can vary, so it’s advisable to monitor your account and stay updated through official company communications.
Can I sell my original shares after the record date and still receive bonus shares?
Yes, if you were holding the shares on the record date, you are entitled to receive the bonus shares even if you sell your original shares after the record date. The entitlement is based on holdings as of the record date.
How will the bonus issue impact the stock price?
On the ex-date, the stock price typically adjusts to reflect the bonus issue. In the case of a 1:2 bonus, the share price may decrease proportionally to account for the increased number of shares, but the total value of your holdings remains unchanged.