Shraddha Prime Projects Ltd. Declares 1:1 Bonus Share Issuance Amid Market Activity

Shraddha Prime Projects Ltd. Declares 1:1 Bonus Share Issuance Amid Market Activity

Amidst the bustling stock market activity leading up to the budget, certain stocks are drawing attention due to corporate announcements and results. One such stock is Shraddha Prime Projects Ltd., a real estate company based in Mumbai, which has announced a bonus share issuance.

The Board of Shraddha Prime Projects Ltd. has approved a 1:1 bonus share issuance. This means shareholders will receive one additional share for each share they own. Despite this announcement, the company’s shares dropped by 3.33% on Wednesday, closing at ₹220. The company’s market capitalisation now stands at ₹442.39 crore.

Bonus shares are additional shares given to existing shareholders without any cost. Companies distribute them as a reward when they achieve sufficient profits, preferring shares over cash dividends. For instance, if you own 10 shares and the company issues a 1:1 bonus, you will receive 10 extra shares for free.

Issuing bonus shares increases the total number of outstanding shares, typically leading to a decrease in the share price. However, the overall value of an investor’s holdings remains unchanged. Over time, investors might benefit from having more shares, potentially increasing their returns.

The Board initially recommended this bonus share issuance on December 9, 2024. The record date for shareholders to qualify for these bonus shares is January 24, 2025. Eligible shareholders should see these shares credited to their demat accounts by February 8, 2025.

The company stated that “the record date has been set as January 24. All shareholders registered by this date will receive bonus shares.” Despite a recent stock price drop of about 4%, Shraddha Prime Projects Ltd. has provided a robust return of 105% over the last six months.

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Original news source Credit: www.goodreturns.in

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