Investors in the small-cap segment are closely watching GRM Overseas Ltd this week. The company has officially announced the crucial date for its upcoming bonus share distribution, a move eagerly awaited by the market.
Key Dates for Shareholders
The company has declared that Wednesday, December 24, will serve as the record date for its bonus issue. This is the cut-off date to determine which shareholders are eligible to receive the bonus shares. To qualify, investors must hold the company's equity shares in their demat accounts by the end of this date.
Following the record date, the deemed date of allotment for the bonus shares is set for Friday, December 26. This formalizes the distribution process, with new shares expected to be credited to eligible investors' accounts shortly after.
Details of the Bonus Issue
The corporate action involves issuing two new fully paid-up equity shares for every single existing share held by an investor. This is a 2:1 bonus ratio, meaning a shareholder possessing 100 shares of GRM Overseas as of the record date will receive an additional 200 shares, taking their total holding to 300 shares.
This decision received formal approval from the company's board of directors back in November. The announcement of the specific record date has now provided clarity and set the timeline in motion, allowing investors to plan accordingly.
Market Impact and Investor Sentiment
GRM Overseas, often labeled a multibagger stock for its historical performance, has been in the spotlight following this news. Bonus issues are typically viewed positively by the market as they reflect a company's confidence in its financial health and future prospects. They also enhance liquidity and make the stock more accessible to a broader set of retail investors.
The fixation of the record date is the final procedural step before the shares are distributed. Market analysts suggest that such corporate actions can influence trading activity in the stock in the days leading up to and following the record date, as investors adjust their positions.
Shareholders are advised to confirm their holdings and ensure all necessary formalities are completed with their depository participants to smoothly receive the bonus entitlement.
