Fractional bonus share

nac

Well-Known Member
#1
ITC announced bonus share, and I was in an assumption that I would be getting fractional share or round up to the next whole digit, but to my surprise it's rounded down. I am not sure if I will get that 1/3rd of the share price in cash or that's a loss for me.

Do you guys have any idea about this? If you have, please comment.

Thank you.
 

deba72

Well-Known Member
#2
ITC announced bonus share, and I was in an assumption that I would be getting fractional share or round up to the next whole digit, but to my surprise it's rounded down. I am not sure if I will get that 1/3rd of the share price in cash or that's a loss for me.

Do you guys have any idea about this? If you have, please comment.

Thank you.
You will get cash, I think.
 
#5
ITC announced bonus share, and I was in an assumption that I would be getting fractional share or round up to the next whole digit, but to my surprise it's rounded down. I am not sure if I will get that 1/3rd of the share price in cash or that's a loss for me.

Do you guys have any idea about this? If you have, please comment.

Thank you.
Either they will issue fractional bonus shares coupons and people can combine those and get full share or they will collect all fractional entitlements, sell those shares in the market and pay the proportional amount to investors.

Smart_trade
 

nac

Well-Known Member
#8
It's been about 2 weeks, no response from my broker or from ITC.

Got this info when googling.

that no fractions arising out of the issue and allotment of the Bonus Shares shall be allotted by the Company and the Company shall not issue any certificate or coupon in respect thereof but all such fractional entitlements shall be consolidated and the Bonus Shares, in lieu thereof, shall be allotted by the Board to nominees appointed by the Board, who shall hold the same as trustees for the Members entitled thereto, and sell the said Shares so arising at the then prevailing market rate and pay to the Company the net sale proceeds thereof, after adjusting therefrom the cost and expenses in respect of such sale, for distribution to Members in proportion to their fractional entitlements;
Source: http://www.itcportal.com/about-itc/shareholder-value/pdf/postal-ballot-2016.pdf
I don't know how long this process will take. :beer:
 

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