The board of directors of the business has also suggested a bonus issuance of equity shares in the proportion of 2:1, subject to shareholder approval by postal vote.

The suggestion indicates that for every one share a person has in the firm, he or she will receive two more shares.

The business stated that bonus shares will be awarded from free reserves produced from the company’s profits at the conclusion of FY21.

However, the company fixed record date as 6th December, 2021.

What is Record date?

Record Date is the date set by the company under which the investor must own shares by that date, to be eligible for a bonus ( 06-12-2021 ).

How does the IEX Bonus issue work?

A firm offers bonus shares to its shareholders to improve the liquidity of the stock as well as to lower the stock price to make it more accessible to investors. A company’s bonus shares are fully paid extra shares issued to its current shareholders.

Now, as part of the IEX bonus issue, 59,91,13,022 equity shares with a face value of Re 1 apiece (for a total face value of 59,91,13,022) would be issued. The company’s share capital before the bonus issue is 29,95,56,511, split into 29,95,56,511 equity shares with a face value of Re 1 apiece.

How to check eligibility for iex bonus?

Bonus shares are available to all shareholders who possess shares of the company before the ex-date, which is established by the company.