Upcoming Stock Splits, Bonus Issues Next Week: 8 Stocks In Focus; Know Last Dates To Be Eligible

The trading week ahead is going to be busy as a total of eight companies are lined up for their stock splits and bonus issues on exchanges. Of the total, 6 companies are splitting their shares, the majority of them for the first time. While two stocks are going to turn ex-bonus. To be eligible, investors have to ensure they hold these shares before the record date. Stock splits and bonus issues are part of listed companies' incentives.

March 17:

Sika Interplant Systems Stock Split:

This defence stock is going to split on exchanges in the ratio of 1:5. The face value of Rs 10 will be sub-divided into Rs 2, meaning 1 equity share will be split into five small shares. The record date and ex-split date are fixed on March 17.

Currently, the aerospace and defence company is at Rs 2471.95 apiece on BSE, with a market cap of Rs 1,048.15 crore.

March 18:

Padam Cotton Yarns Bonus Issue:

The company is a penny stock engaged in the textile products business. Trading at Rs 159.10 apiece with a market cap of Rs 123.24 crore, Padam Cotton Yarns is going to turn ex-bonus on March 18 for its bonus issue of 2:3 ratio. Meaning, the company will issue 2 new free shares on existing 3 shares. Notably, the ex-date is also its record date to be eligible for the bonus shares.

March 20:

Blue Pearl Agriventures Stock Split:

Yet another penny stock engaged in the chemicals and commodity business, is going to turn ex-split for the first time in the ratio of 1:10. Here, the face value of Rs 10 will be split to Rs 1 each, meaning 1 existing equity share to sub-divide into ten small shares.

The penny stock is currently at Rs 176.55 apiece with market cap of Rs 4.52 crore. The latest price level is Blue Pearls new 52-week high. The record date to be eligible for stock split benefits is set on March 20.

March 21:

Friday is packed with a host of stock splits and bonus issues.

Greenlam Industries Bonus Issue:

Engaged into plywood and laminates business, Greenlan is a smallcap stock with market cap of Rs 5,959.61 crore. The stock is currently at Rs 467.15 apiece.

Greenlam has set March 21 as the record date to determine eligible shareholders for its bonus issue of 1:1 ratio. The ratio means 1 free share on existing 1 share.

Last Mile Enterprises Stock Split:

Last Mile is a NBFC trading as a penny stock. The company is going to split for the first time in the ratio of 1:10, and its record date is set on March 21. Currently, the stock is trading at Rs 216.25 apiece with market cap of Rs 757.72 crore.

Optimus Finance Stock Split:

Also, a NBFC trading as a penny stock is going to split for the first time in the ratio of 1:10. The record date is fixed on March 21. The stock is currently at Rs 230.90 apiece with market cap of Rs 172.54 crore.

Shukra Pharmaceuticals Stock Split:

A small-cap engaged into pharma sector, is going to split for the first time in the ratio of 1:10 as well, with record date set on March 21. The stock is currently at Rs 245.80 apiece with market cap of Rs 1,076.31 crore.

Softrak Venture Investment Stock Split:

Softrak is another penny stock engaged into NBFC stock. This NBFC is going to carry its first ever stock split in the ratio of 1:10 and the record date is March 21. Currently, the stock is at Rs 34.23 apiece with market cap of Rs 17.39 crore.

Stock Split Vs Bonus Issue:

During both stock splits and bonus issues, the share price of listed companies are adjusted. However, bonus issue is free of cost, while in splits case, only the face value of the stock gets sub-divided which multiplies the number of shares.

Factors	STOCK SPLIT	BONUS ISSUE
Meaning	Already owned shares split into smaller shares.	Free additional shares given to existing shareholders based on no. of shares owned.
Reason	To improve Liquidity by breaking it into smaller size.	To distribute gains of accumulated earnings without paying cash to the shareholders.
Face Value(FV)	Reduces in proportion of split ratio.	Remains same.
Share Capital & Reserves	No impact.	- Reserves reduced.
		- Money moved to Share capital as new shares are issued.
Impact on future Dividend	Reduces in proportion to split ratio.	Remains same.
Beneficiaries	Shareholders(as on Record Date).	Shareholders(as on Record Date).
EXAMPLE	Stock Split = 1:10	Bonus issue = 2:1
	 Every already owned share is split into 10 new shares of new FV of 1/10 of original FV.	Shareholder gets 2 free shares for every 1 share already owned.
		So finally he has 1+2 = 3 shares of same FV as before.