Multibagger stock to trade ex-bonus from Thursday. Do you own?

Shares of multibagger stock Rajeshwari Cans will start trading on an ex-bonus basis from tomorrow as the company has fixed December 19 as the record date for determining shareholder eligibility for its 1:1 bonus share issue.

This means today becomes the last day to buy the shares of the company to be eligible for the bonus shares.

“Pursuant to the Regulation 42 of SEBI (LODR) Regulations, 2015 the Company has fixed Thursday, 19t Day of December 2024, as the Record Date for issue of 1:1i.e. 1 (One) Bonus Equity Shares of the face value of Re. 10/- each fully paid up for every 1 (One) existing Equity Shares of Face Value of Re. 10/- each fully paid up,” said the company in an exchange filing.

This is the first-ever instance of the company issuing bonus shares to its shareholders, according to the Trendlyne data.

A 1:1 bonus share issue means that for each share of the company held by its shareholders, they would get one extra share credited in their accounts and this is the first ever instance in which the company will be issuing bonus shares to its shareholders, as per the available information.

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Companies typically issue bonus shares to utilize their free reserves, boost Earnings Per Share (EPS), and expand paid-up capital while reducing reserves. These shares, often called free shares, are distributed to shareholders at no extra cost.

The investors must purchase the stock before the ex-date to qualify for bonus shares, as those buying on or after the ex-date won’t be eligible.

The shares of Rajeshwari Cans have given whopping returns of 320.4% in the last one year and nearly 380% in the last 6 months, according to the BSE analytics.

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