Bonus Share Record Date vs Stock Price

findvikas

Well-Known Member
#1
Hi,

I am not an expert and was trying to find out the co-relation between the record date of bonus share and stock price falling.

I have been tracking quite a few counters who are expected to issue bonus share in the month of August. One such counter is TRF Ltd. (BSE:505854), record date is fixed for today... 3rd Aug. 09 but if you look at the stock price, it has fallen almost 50% on last Friday.

Another such counter is Vishal Information Technologies Ltd.(NSE:VITLINFO), again this counter has fallen to yearly low and over 50% in last one week.

Another example, RPOWER - ex-date was fixed to be 30 May 08., stock closed at 408.30 on 29/05/08 but opened at 308.5 on 30/05/08 and closed at 234.20 on 30/05/08


I am confused why all the stock just fall almost 50% after or before bonus announcement ? Can anyone please take some time to explain me?

Thanks
 

MurAtt

Well-Known Member
#2
This is because of the T+2 delivery.

Say record date is 3rd August 2009. So the shares have to be in your DP by 2nd August for you to be eligible for Bonus. Now for this you have to buy on or before 29th, then only the shares will be credited to your a/c by 31st (T+2). (1st and 2nd being holiadys and 3rd being the record date.)

Cheers ...
 

rvm123

Active Member
#3
when 1:1 is declared by a company, if someone has 50 shares, additional 50 shares will be given free of cost by capitalising the reserves. Hence, share capital of the company will increase by 100% and to that extent, reserves will come down. Hence, share price of the compamy will fall approximately by that much percentage
 

findvikas

Well-Known Member
#4
when 1:1 is declared by a company, if someone has 50 shares, additional 50 shares will be given free of cost by capitalising the reserves. Hence, share capital of the company will increase by 100% and to that extent, reserves will come down. Hence, share price of the compamy will fall approximately by that much percentage
Thanks :clap:
 
#5
I am a new investor. I bought 400 shares of Vishal Information Technologies Ltd on 30th july @ Rs 32.5. Bonus is declared as 1:2 Ex date 6th Aug and Record Date 7th Aug. Still I have not get the additional 200 bonus shares. What should i do now? When I will get those bonus share? can some body help me?
 

MurAtt

Well-Known Member
#6
Bonus shares will take time to get credited. Depennds on the company.
TCS bonus was allotted 2 days after the date. Some allott 15 days .. like depends.
 

findvikas

Well-Known Member
#8
thanks for replying.
please let me know if I sell the shares in my demat account before receiving the bonus shares, will it cause any problem?
Ideally it should not but confirm with your broker first, ideally if you have the shares in your DP account at the Ex-Date then you are entitled to get bonus,dividend & rights issue... whatever it may be.
 
#9
Guys, Is there any dedicated website which helps keep track of upcoming dividends and bonus issues. If not, what is the best way of looking around for stocks with upcoming dividend and bonuses :)

Thanks,
Hardik
 

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