1:2 Stock Split, 1:1 Bonus Issue: Steel Stock Fixes Record Date To Determine Eligible Shareholders

Rudra Global Infra Products has fixed a record date to determine eligible shareholders for its bonus issue and stock sub-division. In the trading week between October 3-6, the stock gained nearly 4%.

As per the regulatory filing, the company fixed October 18 as the record date for the purpose of determining eligible shares for bonus issue in the ratio of 1:1 and 1:2 stock splits. This will also be the ex-date for these two corporate actions.

Bonus issue:

Eligible shareholders will receive 1 bonus equity share of face value of Rs 5 for every 1 (one) fully paid-up equity share of Rs 5 of the Company.

In general terms, bonus shares are issued in a certain proportion only to the existing shareholders free of cost. 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.

Stock Split:

For stock split, the record date is the same. The 1:2 ratio means that every 1 fully paid-up Ordinary (equity) share having face value of Rs 10 each will be subdivided into 2 equity shares fully paid-up Ordinary (equity) shares having a face value of Rs 5 each.

Notably, typically, listed companies declare a stock split of already owned shares into much smaller shares. This is done to improve liquidity by breaking the shares into smaller sizes. The face value of the shares reduces in proportion to the split ratio, however, there is no impact on the company's share capital and reserves. Although the price value of a stock reduces in a stock split, it the number of shares held rises in the investors' portfolio of that specific stock.

Rudra Global Infra Products is engaged in the steel industry. The company is engaged in the manufacturing of TMT bars and Billets and trading in Cement. Its segments are Manufacturing and Retail.

On BSE, Rudra Global shares ended at Rs 112.35 apiece, up by 2% on Friday. Year-to-date, the stock zoomed by at least 21%.

As per the ICICI Direct website, Rudra Global's key strengths are -- strong annual EPS growth, RoCE improving in the last 2 years, and Return on equity (ROE) improving in the last 2 years. Among the opportunities is that the stock has recovered from 52 Week's Low significantly.

From its 52-week low of Rs 54.25 per share, the stock has advanced by 107.09% on BSE.