Along with its quarterly results, Indiamart has declared a bonus issue of shares to investors in the proportion of 1:1, which means, for every 1 share investors hold, they will get an additional 1 share.
The company has fixed June 21 as the record date to determine the eligibility of the shareholders. The bonus shares will be credited to those shareholders whose names appear in the register of members maintained by the company’s registrar and transfer agents.
A company issues bonus shares for their 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.
IndiaMart is one of India’s largest online B2B marketplaces, connecting buyers with suppliers. With a 60% market share of the online B2B classified space in India, the channel focuses on providing a platform to small and medium enterprises (SMEs), large enterprises as well as individuals.The company’s shares have given multibagger returns to investors over the last five years, rising over 340%. So far this year, the stock is up about 36%.
Meanwhile, Gulshan Polyols has announced to issue bonus shares in the proportion of 1:5, which means, for every 5 shares investors hold, they will get an additional share. The company has fixed June 21 as the record date.
Gulshan Polyols is a manufacturer of ethanol/bio-fuel, grain and mineral based specialty products with three decades of experience.
The shares of the company have risen almost 400% in the last five years. On a year-to-date basis, they are up 6.3%.
