1:1 Bonus + 1:2 Split: NBFC Hits 10% Upper Circuit On Ex-Date; From Rs 200, Penny Stock Is Now To Below Rs 60

BN Rati Securities, a financial services provider, has turned ex-date for its stock split and bonus issue on Friday, January 24. The share price which traded a little over Rs 200 on January 23, is now below Rs 60 levels. Bonus issues and stock splits are carried out to improve liquidity in the company. Also, the two rewards have a ratio which adjusts the stock price, making it cheaper for both new and existing customers for fresh positioning.

BN Rathi Securities Share Price:

After the market hours of January 24th, BN Rathi stock froze at its adjusted price to Rs 56.45 apiece on BSE, which was its 10% upper circuit. Adjusted to the stock split and bonus ratio, BN Rathi stock's 52-week high and low are now at Rs 72.75 apiece and Rs 21.66 apiece respectively.

On the previous day, the stock price was at Rs 205.45 apiece on BSE. BN Rathi is listed only on BSE and traded as a penny stock in the NBFC segment.

BN Rathi's market capitalisation is around Rs 234.27 crore.

BN Rathi Securities Stock Split:

The company turned ex-date on January 24, for its stock split of 1:2 ratio. This was also its record date to determine eligible shareholders.

The ratio 1:2 meant that BN Rathi's 1 (one) Equity share of the face value of Rs. 10/~ each fully paid up is sub-divided into 2 (two) Equity shares of the face value of Rs. 5/- each fully paid up.

Generally, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

BN Rathi Securities Bonus Issue:

Also, on January 24, the company turned ex-bonus for its bonus issue of 1:1 ratio. This was also the record date. 1:1 ratio meant that BN Rathi is going to allot 1 free ew fully paid-up equity share of Rs. 5/- each for every 1 (One) existing fully paid-up equity share of Rs. 5/- each held by them.

Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

About BN Rathi Securities:

B.N.Rathi Securities Ltd is a publicly listed stock broking firm providing integrated types of services, encompassing the entire spectrum of activities relating to the Financial Market Transactions. BNRSL Group has been in the financial markets for over Five Decades and this vast experience is put to use for providing the best services in today's complex financial markets.