Bonus Shares This Week: Avax Apparels, R M Drip Set Record Dates for Shareholder Eligibility
Avax Apparels and Ornaments Ltd. and R M Drip and Sprinklers Systems Ltd. are scheduled to issue bonus shares to eligible shareholders in the coming week, with both companies announcing their respective record dates.Avax Apparels Bonus Issue Details
The board of Avax Apparels and Ornaments has recommended a bonus issue in the ratio of 3:1. This translates to shareholders receiving three fully paid-up equity shares for every one existing share held, subject to shareholder approval.The company has fixed April 7 as the record date to determine shareholder eligibility for the bonus allotment.
R M Drip Bonus Issue Details
R M Drip and Sprinklers Systems has also announced a bonus issue, with the board recommending a ratio of 5:7. Under this structure, shareholders will receive five new fully paid-up equity shares for every seven shares they currently hold, subject to shareholder approval.The record date for this bonus issue has been set as April 10.
Record Date and Eligibility Explained
The record date plays a critical role in determining which shareholders qualify for bonus shares. Only investors who hold shares in their demat accounts as of the record date will be eligible.Under India’s T+1 settlement cycle, investors must purchase shares at least one trading day before the record date. Shares bought on the record date itself will not be credited in time to qualify for the bonus issue.
What Bonus Shares Mean for Investors
Bonus shares are issued free of cost to existing shareholders, based on their current holdings. Companies typically issue bonus shares by capitalising their retained earnings, which helps improve stock liquidity.While the number of shares held by investors increases, the overall value of the investment remains unchanged, as the stock price adjusts proportionally following the bonus issuance.
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