Aaron Industries, a diversified player engaged in elevator parts and fabrication businesses, has announced a 1:1 bonus issue, meaning that shareholders will receive one additional share for every one share held.
These corporate moves often reflect a company’s efforts to reward shareholders while increasing the stock’s liquidity in the market.
Meanwhile, Kretto Syscon, a company operating in the engineering and infrastructure solutions space, has declared a 2:25 bonus issue. This means investors holding 25 shares will receive two additional shares.
Though the ratio is smaller compared to Aaron Industries, it still demonstrates the company’s intent to enhance shareholder value and encourage broader participation.
For investors, today is a crucial cut-off because trades on Indian exchanges follow a T+1 settlement cycle, meaning that stocks bought today will be credited to the demat account tomorrow, thereby ensuring eligibility for the bonus shares.Those who delay purchases beyond today will not feature in the company’s shareholder list on the record date and hence will miss out on the corporate benefit.Bonus issues do not alter the overall value of an investor’s holdings, but they increase the number of shares held, which often improves stock liquidity and makes the share price more affordable.Also read: Is Rs 4 crore enough for retirement corpus? Gurmeet Chadha gives simple calculation metric
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