Business
Central Depository Services Plans Bonus Share Issuance, Stocks Surge 10%
Central Depository Services (India) Ltd. has revealed plans for the issuance of bonus shares, causing a significant surge in its stock value by over 10%.
The company announced that its board meeting scheduled for July 2 will address the proposal for the issuance of bonus shares, marking a milestone as it considers this move for the first time.
The Record date for the bonus issue is yet to be determined, and only shareholders who acquire the stock before the ex-date will be eligible to receive the bonus shares.
Bonus shares are distributed to capitalize on free reserves, enhance Earnings Per Share (EPS), increase paid-up capital, and reduce overall reserves without any extra cost to shareholders.
Notably, CDSL had recently recommended a final dividend of Rs. 19 per equity share for the fiscal year 2024, along with an additional special dividend of Rs. 3 per share, bringing the total payout to Rs. 22 per share.
The stock price of CDSL soared by 10.15% to reach Rs. 2160 in early trading, reflecting a market cap of Rs. 23,057 crore on the NSE.
With 47.74 lakh shares exchanged, the turnover amounted to Rs. 1036.5 crore as investors responded positively to the news of the bonus share issuance.
CDSL is a SEBI-registered Depository, established to deliver secure and cost-effective depository services to market participants, ensuring convenience and reliability.
