Penny Pharma Stock Under Rs 70 Hit Upper Circuit: Company Fixes Record Date for Bonus Issue – Check the Details Inside

The Board of Directors approved a 2:1 bonus issue (i.e., 2 shares for every 1 share held), subject to members' approval. Here’s the record date.

JFL Life Sciences Limited shares hit the upper circuit limit of 5 per cent after the company fixed the record date for its upcoming bonus issue.

In a press release on September 10, the company announced that September 24, 2024, has been set as the record date, subject to members' approval at the forthcoming Annual General Meeting scheduled for September 23, 2024, just one day before the record date. In August, JFL Life Sciences Limited's Board of Directors approved a 2:1 bonus issue (i.e., 2 shares for every 1 share held), pending approval from shareholders.

The record date, or cut-off date, is when the company reviews its records to identify eligible shareholders for upcoming corporate actions such as a bonus issue, dividend, or share buyback. Shareholders holding shares on the record date will be eligible to receive the bonus shares.

Companies typically issue bonus shares to encourage greater retail investor participation by lowering the price per share and increasing liquidity. A bonus issue also provides an alternative to dividend payments as a way to reward investors.

Incorporated in 2010, JFL Life Sciences is a pharmaceutical manufacturing company with operations both domestically and internationally. It supplies products to 10 countries and has a strong R&D foundation, along with an FDA-approved manufacturing facility near Ahmedabad. The stock is trading at Rs 63, with a market capitalisation of over Rs 69 crore. So far in 2024, the stock has delivered a 51 per cent return on a year-to-date basis.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.