Central Depository to issue 1:1 bonus shares
07 Jul 2024
The board of directors of Central Depository Services (India) Ltd (CDSL) at its meeting on Tuesday approved the issue of one bonus share for every one share held by shareholders.
A stock exchange filing by CDSL said the bonus shares will be credited to shareholders’ account within two months from the date of approval by the board.
CDSL will capitalise its free reserves, including general reserves and retained earnings through the issuance of bonus shares, subject to the approval of the shareholders, according to the exchange filing.
The first bonus issue by CDSL, it would double shareholder wealth and return on investments, while doubling the company’s issued capital.
The bonus issue will result in doubling the company’s authorised share capital from Rs150 crore comprising 150 million equity shares of Rs10 paid-up value to Rs300 crore comprising 300 million equity shares Rs10 each.
CDSL shares were trading lower, at Rs2,386.85 apiece, on Tuesday. The stock, however, has been gaining with 33 per cent increase in prices over the past 6 months and an incease of 110 per cent over a 12-month period.
The board is yet to fix a record date for the share issue.
CDS, an entity registered with market regulator Securities and Exchange, provides convenient, dependable and secure and affordable depository services to market participants.