CDSL announces a 1:1 bonus issue, doubling shares for shareholders, and increasing the authorised share capital from ₹150 crore to ₹300 crore. The record date is yet to be announced. This is the first time CDSL has considered issuing bonus shares.
Central Depository Services (India) Ltd. (CDSL) has declared a bonus issue for its shareholders in a 1:1 ratio. This implies that for every share held by an investor, an additional share will be credited to their account.
The proposal is subject to the approval of shareholders and regulatory bodies. The record date, which determines shareholder eligibility for the bonus shares, will be announced later.
In conjunction with the bonus issue, CDSL's board approved an increase in the authorised share capital of the company from ₹150 crore to ₹300 crore. This change requires an amendment to the company's Memorandum and Articles of Association (MoA).
The increase in authorised share capital is intended to support the issuance of bonus shares and the company's future growth plans.
This is the first time CDSL has considered issuing bonus shares. The decision aims to capitalise on the company's free reserves, including general reserves and retained earnings.
Bonus shares are issued at no additional cost to shareholders, effectively doubling their shareholding without requiring any extra investment. This approach helps increase the company's paid-up capital while also reducing its reserves.
Explore:Central Depo Ser (i) Ltd Share Price
CDSL bonus shares are expected to be credited to shareholders' accounts within two months from the date of board approval, by September 1, 2024. The issuance will proceed once all necessary shareholder and regulatory approvals are obtained.
CDSL's announcement of a 1:1 bonus issue and the increase in authorised share capital is a significant move for the company and its shareholders. With robust financial results backing the decision, this initiative underscores CDSL's commitment to rewarding its investors and supporting its long-term growth strategy.
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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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