The Board of Kamdhenu Ventures has approved a proposal to issue bonus shares to its investors in the proportion of 1:1, which means, for every share investors hold, they will get an additional share.
“The Board has recommended an issue of 1 bonus equity share (fully paid‐up) of Rs 5 each for every 1 existing equity share of Rs 5 each, held by the shareholders in the company, as on the record date,” the company said in a filing.
The record date for determining the entitlement of the equity shareholders with regard to the bonus issue will be intimated in due course.
The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.
The bonus equity shares will be issued out of the securities premium account, as on June 26, 2023
A company issues bonus shares for its shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.
Kamdhenu Ventures makes decorative paint products. Its product offerings include exterior and interior emulsions, acrylic distempers, water-based and solvent primers, synthetic and GP enamel, wood finishes, aluminum paints, and textured and designer finishes.
Post the announcement of the bonus issue, the company’s shares have soared nearly 11% on NSE. The company’s stock has been among the top performers this year, rising as much as 50%.