Bonus Issue: Banco Products, an auto components and equipment-making company, has turned ex-bonus on Monday, December 30, 2024. On its ex-date, the stock price fell sharply by 8.4% on BSE. The stock price has adjusted accordingly. The allotment of shares will eventually take place soon.
Banco Products Share Price:
At the time of writing, Banco Products share price was at Rs 491 apiece, down by 7.10% on BSE, with a market cap of Rs 6,983.80 crore. This is compared to the stock price of Rs 1,057 apiece on December 27th, last week which is prior to ex-bonus.
Also, adjusted to the bonus issue ratio, the stock's new 52-week high and low is at Rs 594.80 apiece and Rs 252.68 apiece respectively. Last week, the 52-week high and low were at Rs 1,189.60 apiece and Rs 505.35 apiece respectively.
The reason why the stock has recorded a massive dip of 23% YTD, is because of the bonus issue and would see full-fledged performance after the bonus shares are credited to the demat account of eligible investors.
BANCO Products Bonus Issue:
The auto company turned ex-bonus on December 30th, which is also the record date for the purpose of determining the equity shareholders of the Company eligible for bonus equity shares of the Company. Meaning, that only those investors will be eligible who are holding BANCO shares by the end of the record date.
The bonus issue ratio is 1:1, which means that the company will reward 1 bonus share on the existing 1 share.
The bonus issue comes after interim dividend payout of whopping Rs 20 per share whose record date was on February 16, 2024.
How Much Time Does Bonus Shares Take To Get Credited?
Earlier, it was known that bonus shares would get credited in a span of 15-20 days from the record date. However, market regulator Sebi has reduced the time taken for credit of bonus shares and trading of such shares, from the record date of the Bonus Issue. The settlement type for the bonus issue will be T+2. Simply put, you will be able to receive your bonus shares in the demat account in two days from the record date from the earlier timeframe of two weeks.
Sebi's new rule has come into effect from October 1, 2024. Hence, any bonus shares carried after October 1, will be eligible for a 'T+2' settlement.
BANCO Products Is Undervalued?
As per Alpha Spread data, the intrinsic value of one BANCOINDIA stock under the Base Case scenario is 839.05 INR. Compared to the current market price of 491.9 INR, Banco Products (India) Ltd is Undervalued by 41%.
About BANCO Products:
Born of entrepreneurial spirit in 1961, Banco Products (India) Ltd. has today carved a niche for itself as a leader in the business of engine cooling and sealing systems both for automotive and industrial applications. The product range for engine cooling systems includes Radiators, Charge air coolers, Oil coolers - Transmission & hydraulic, Fuel coolers, Battery coolers, Inverter coolers, in Aluminium and copper/brass configurations and accessories expansion tanks, Fan motor assembly, Fan shroud and guard and miscellaneous mounting and plumbing accessories.
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