1 Bonus Share And 1 Dividend Announcement To Take Note Of

Currently alongside quarterly announcements, companies are also making other relevant disclosures and approving corporate actions. Likewise, here are 2 companies, one of them has approved bonus issue while the other has announced final dividend together with the special dividend for Fy2022.

EKI Energy Services: Bonus share issuance in 3:1

The small cap consulting services firm's board on May 17, 2022 approved bonus share issuance in the ratio of 3:1 i.e. 3 shares for every 1 share held. As per further disclosures, the company would issue 2,06,22,000 bonus shares for an amount of Rs.20.62 crores.

Additionally the company has also provided share capital details- pre and post bonus issue and that will amount to Rs. 6,87,40,000 and Rs. 27,49,60,000, respectively.

Bonus shares as per the company's filing will be credited or dispatched on or before July 12, 2022.

The company is a strong brand in the area of carbon credit, climate change and sustainability solutions globally.

Abbott India

The company alongside notifying its Q4Fy22 results has also announced a hefty dividend for Fy22. In respect of the dividend, the company's exchange filing read, " the Board of Directors at its Meeting held today i.e. May 17, 2022, recommended payment of final dividend of Rs. 145/- and special dividend of Rs. 130/- per equity share of Rs 10/- each for the year ended March 31, 2022, subject to approval of the Shareholders at the ensuing Annual General Meeting scheduled to be held on August 10, 2022.The aforesaid final dividend, if approved by the Members, will be paid on and after August 17, 2022 onwards".

So, accordingly, as the record date shall be intimated in due course, the mid-cap pharma major has announced that if approved the dividend payment date for the said dividend shall be on or after August 17, 2022.

Stock	Industry	Corporate action	Payment or credit date	Record date
EKI Energy Services	Consulting services	Bonus share issuance (3:1)	On or before July 12	Not disclosed
Abbott India	Pharma	Dividend of Rs. 275 including special dividend of Rs. 130/share	On or after August 17, 2022	Not disclosed

How bonus share issuance and dividend impact share price?

Say here we will discuss taking into account the bonus share issuance announcement made i.e. 3:1 in this case and other assumptions, so, accordingly here is the table provided.

Bonus issue	No. of shares held before bonus	Share price before bonus issue	Inv value	No. of shares post bonus issue	Share price after bonus issue	Value of investment post bonus issue
03:01	30	Rs. 550 ( assumption)	Rs.16500	120	Rs. 137.5	Rs.16500

Similarly if the company gives out dividend then on the ex-dividend date, its share price adjusts for the dividend announced. Say if the company was trading at Rs. 335 and announces Rs. 5 dividend then it drops up to Rs. 330 per share.

 

Disclaimer

The story just collates the 2 corporate actions announced and should not be construed as an investment advice into them.