CDSL Announces First-Ever Bonus: Know the Bonus Ratio and Other Details

The new shares are expected to be credited or dispatched within two months from the date of board approval

Central Depository Services (India) Limited (CDSL) has made a landmark announcement that marks a significant milestone in the company’s history. In a board meeting held on July 2, 2024, the company’s directors approved the issuance of bonus shares, a first-ever for CDSL. This strategic move is aimed at rewarding shareholders and enhancing the liquidity of the company's shares in the market. Here’s a detailed look at the announcement and what it means for investors.

Key Details of the Bonus Issue

Bonus Ratio:

The bonus shares will be issued in the ratio of 1:1. This means that for every fully paid-up equity share held by an eligible shareholder, one new fully paid-up equity share will be issued.

Face Value:

Each bonus share will have a face value of Rs 10, aligning with the existing shares.

Record Date:

CDSL will announce the record date for determining the eligibility of shareholders for the bonus issue shortly. It is crucial for shareholders to hold the company's shares on this date to be eligible for the bonus shares.

Approval and Implementation

The bonus issue is subject to the approval of shareholders and necessary regulatory approvals. The new shares are expected to be credited or dispatched within two months from the date of board approval, i.e., on or before September 1, 2024.

Shares of CDSL opened at Rs 2,446.00 with a previous close of Rs 2,438.00. Currently, the stock is trading at Rs 2,415. The trading volume stood at 42,94,903 shares, amounting to a value of Rs 1,03,593.06 lakhs, while the Volume Weighted Average Price (VWAP) was Rs 2,427.29. With a market capitalization of Rs 25,205 crore.  

Impact on Share Capital

Pre-Bonus Issue:

The company currently has 10,45,00,000 equity shares with a face value of Rs 10 each, totaling Rs 1,04,50,00,000 in share capital.

Post-Bonus Issue:

Post-issuance, the total share capital will double to 20,90,00,000 equity shares, amounting to Rs 2,09,00,00,000.

Source of Bonus Shares

The bonus shares will be issued by capitalizing Rs 10,94,93,000 from the General Reserves and Rs 93,55,07,000 from Retained Earnings. As of March 31, 2024, the company had sufficient reserves, audited at:

General Reserves: Rs 10,94,93,000

Retained Earnings: Rs 10,47,89,01,000

Disclaimer: The article is for informational purposes only and not investment advice.