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There are often reports in the stock market that make investors to dance, and have brought one such good news to the government sector power company SJVN LimitedThis legendary company has made a big announcement for its current shareholders – Bumper bonus share announcement! If you have 4 shares of SJVN, then you are going to get 1 additional shares for free. The company has also set a ‘record date’ for this.
What is SJVN’s bonus share offer?
SJVN has announced that it to its investors Bonus share in ratio of 1: 4 Will give This simply means that if there are every 4 shares of the company in your demat account, then you will get 1 bonus share (free shares) from the company instead. Suppose you have 400 shares, then you will get 100 additional shares, and your share number will be 500.
What are bonus shares and why do the company give them?
Bonus shares are the additional shares that the company releases for free to its existing shareholders in proportion to their share. For this, shareholders do not have to pay any money. The company usually does this when it:
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Wants to reward its shareholders.
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The company wants to increase liquidity, that is, it helps in buying and selling shares more easily.
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By adjusting the share price, it wants to make it more attractive to small investors.
SJVN is also doing the same so that it can make its investors happy and increase their trust in the company.
Learn the importance of ‘record date’:
The company for this bonus share Friday, 14 June 2024 The date of ‘record date’ has been declared. This means that if you want to be entitled to SJVN’s bonus shares, then SJVN should be shared in your demat account on or before 14 June 2024. If you do not have shares till this date, then you will not be eligible to get a bonus shares.
Why is the bonus giving more about the company?
SJVN Limited is a Central Public Sector Undertaking (CPSU) under the Ministry of Power, Government of India. It is mainly associated with power generation, including hydropower (hydroelectric), solar energy and wind power projects. The company has been performing brilliant financially for some time. In the last one year, the company’s shares have given multibagger returns to investors, seeing a jump of more than 300%. Recently, the company’s quarterly results have also been very good and the company has also been giving dividends regularly. With this strong performance and desire to reward investors, the company has decided to issue this bonus shares.
What will be the effect on investors?
However, the price per share is adjusted per share (for example, if the price is Rs 135, then the price per share may be around Rs 108 after the bonus, which keeps the total investment price the same as before), but the number of your shares increases. In future, when the value of the company increases or it will declare dividend, you will get the benefit on more shares, which can increase your return in a long time. This shows that the company is confident of its business and is expecting growth in future.