When it comes to investment, opportunities often arise unexpectedly, giving you a chance to enhance your portfolios and boost your returns. As we approach the month of August 2023, the financial market is abuzz with anticipation for the release of upcoming bonus shares. However, this time the list is not exhaustive.
In August this year, Kamdhenu Ventures will be the sole company issuing bonus shares.
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Kamdhenu Ventures is a company that focuses on the paint business. It was demerged from Kamdhenu Ltd, a leading brand in the steel industry, in 2022. The company aims to expand its presence in the decorative and industrial paints segment with a wide range of products and services. Kamdhenu Ventures is listed on the BSE and NSE with the scrip name KAMOPAINTS.
Kamdhenu Ventures Ltd. Bonus details
- The Board of Directors of Kamdhenu Ventures Ltd. has approved the distribution of bonus shares to the company's existing shareholders. According to this proposal, for every fully paid-up equity share of Rs. 5/- each that a shareholder holds, they will receive an additional fully paid-up equity share of Rs. 5/- each, resulting in a 1:1 ratio.
- The bonus issue will be issued from the securities premium account as of 26th June 2023.
- The company has chosen Tuesday, 1st August 2023, as the record date to check which shareholders are eligible to receive bonus equity shares.
- The bonus share issuance is subject to the approval of shareholders of the company at the 02/2023-24 Extra-Ordinary General Meeting scheduled to be held on Monday, 24th July 2023, through video conferencing/ other audio-visual means.
Why is Kamdhenu Ventures Ltd. issuing bonus shares?
- To encourage more retail investor participation in their stock by lowering the price per share and adding liquidity.
- To provide an alternative to issuing a dividend payment for rewarding investors.
- To capitalise their free reserves, increase the earning per share (EPS) and paid-up capital and reduce the reserves and surplus of the company.
- To project a sound financial position and increase the confidence of existing shareholders.
How to check the status of bonus shares allotment?
To check the status of the bonus shares, you can do the following:
- You can log in to your online Demat account and check your statement reflecting the delivery of bonus shares on a given day.
- You can also wait for an SMS or Email from CDSL about the credit of bonus shares into your Demat account.
Please note that bonus shares may take up to 15 days to be credited to your account and may not be immediately available for trading until approved. Also, the company's share price may fall in proportion to the bonus issue, and the earnings per share (EPS) may decrease. Therefore, you should consider the impact of bonus shares on your investment value and returns.
When are you eligible for bonus shares?
You are eligible for bonus shares if you own company shares before the ex-date and record date. The ex-date is the date on which the share price is adjusted to reflect the bonus issue, and the record date is the cut-off date set by the company to determine who will receive the bonus shares.
Conclusion
Whether you hold Kamdhenu Ventures shares or other company shares, receiving bonus shares is mostly beneficial. Firstly, you effectively increase your shareholding in the company by receiving additional shares without any cost. This may enhance your potential returns. The bonus share issuance showcases the company's financial confidence and commitment to rewarding shareholders. Additionally, it aims to attract retail investors by reducing share prices, adding liquidity, and increasing market appeal.
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