2:1, 1:1 Bonus Issues; 1 Smallcap, 1 Penny Stock To Turn Ex-Bonus In Next 2 Days; Do You Own Any?

Two companies are set to reward their shareholders with bonus shares, and for that, they will turn ex-bonus from February 27-28. These are DRC Systems India and FIEM Industries. Accordingly, their share prices will be in focus. DRC Systems has declared a bonus issue of 2:1, while FIEM has announced 1:1 bonuses. Both the stocks have given double-digit returns year-to-date.

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.

DRC Systems India Bonus Issue:

Last week, on Friday, DRC Systems' share price stood at Rs 67 apiece, at its 2% upper circuit on BSE with a market cap of Rs 295.84 crore. Year-to-date, DRC's share is up nearly 54%.

DRC has declared a bonus issue in the ratio of 2:1 -- which means -- 2 (Two) new Bonus Equity Shares of Re. 1/- each for every 1 (One) existing Equity Share of Re. 1/- each fully paid up held as on the "Record Date". The Bonus Issue of Equity Shares is subject to the approval of the shareholders and other applicable statutory and regulatory approvals, as may be required. The Bonus Shares once allotted shall rank pari-passu in all respects and carry the same rights as the existing Equity Shares.

The stock price of DRC will turn ex-bonus on February 27, 2024, which is the record date to determine the
list of shareholders eligible for allotment of Bonus Equity Shares, subject to approval of
Members, which is being obtained through Extra Ordinary General Meeting.

DRC Systems is a people-first organization. DRC Systems India Limited is a renowned name in the field of software development.

FIEM Industries Bonus Issue:

On BSE, FIEM Industries' share price stood at Rs 2,469.40 apiece, up by 0.42% with a market cap of Rs 3,249.69 crore on Friday. Year-to-date, FIEM's share price has grown by 23% as of now.

FIEM has declared a bonus issue in the ratio of 1:1. This means that the company will reward 1 (one) Bonus equity share of Rs. 10 each fully paid up for every 1 (one) existing equity share of Rs. 10 each fully paid-up (in the ratio of 1:1) held by the shareholders as on the "Record Date", subject to the approval of the shareholders and other regulatory approval, as may be required in this regard.

The record date and ex-bonus date are set on February 28, 2024.

Fiem Industries Limited (FIEM) is one of the leading manufacturers of Automotive Lighting, Signaling equipment, Rear View Mirrors, Sheet Metal and Plastic Parts in India with the latest addition of a Canister.

Disclaimer: The write-up highlights about the latest development in bonus issues, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.