B N Rathi Securities Ltd., a well-known micro-cap stockbroking firm, has unveiled a double reward for its shareholders, announcing both a stock split and a bonus issue. These corporate actions are aimed at enhancing liquidity and rewarding investors, marking a significant milestone for the company.
Details of the Stock Split and Bonus Issue
Stock Split
- Ratio: 1:2
Each equity share with a face value of Rs 10 will be split into two equity shares, each with a face value of Rs 5. - Purpose: The stock split is intended to make shares more affordable, increase liquidity, and broaden the shareholder base.
Bonus Issue
- Ratio: 1:1
For every one equity share held on the record date, shareholders will receive one bonus share. This bonus is extended to all equity shareholders, including holders of outstanding warrants convertible into equity shares as of the record date. - Objective: The bonus issue serves to reward shareholders and increase shareholding without any additional investment from them.
Record Date
The record date for both the stock split and bonus issue has been fixed as Friday, January 24, 2025.
About B N Rathi Securities Ltd.
Founded in 1985, B N Rathi Securities Ltd. specializes in securities broking, depository operations, and institutional equities. With a robust presence across India, the company offers a comprehensive suite of investment services, including:
- Equity and Derivatives Trading
- IPO Participation
- Currency Trading
- Mutual Fund Investments
Strategic Implications
The stock split is designed to:
- Enhance Affordability: By reducing the per-share price, more retail investors can participate.
- Boost Liquidity: Increased share volume in the market makes trading easier and more efficient.
The bonus issue:
- Rewards Shareholders: Provides additional shares at no cost to investors, effectively increasing their holdings.
- Reflects Confidence: Demonstrates the company’s strong financial health and commitment to shareholder value.
B N Rathi Securities’ announcement of a stock split and bonus issue underscores its commitment to enhancing shareholder value and accessibility. With a strong financial performance and a history of multibagger returns, the stock remains a compelling choice for investors seeking opportunities in the micro-cap space.
As the record date approaches, market participants should closely monitor this stock, which continues to outperform benchmarks and deliver exceptional returns.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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