NMDC Limited Trades Ex-Bonus with 2:1 Issue
Key Takeaways:
- Mazagon Dock Shipbuilders: The company executed a 1:2 stock split on December 27, 2024, reducing the face value from ₹10 to ₹5 per share.
- NMDC Limited: Shares traded ex-bonus on December 27, 2024, with a 2:1 bonus issue, granting two additional shares for each share held.
- Dhanlaxmi Bank: The stock turned ex-rights on December 27, 2024, for a rights issue offering 14 shares for every 25 held at ₹21 per share.
Mazagon Dock Shipbuilders Executes 1:2 Stock Split
Mazagon Dock Shipbuilders, a prominent defense public sector undertaking, implemented its first-ever stock split on December 27, 2024. The split subdivided each equity share of ₹10 face value into two shares of ₹5 face value, aiming to enhance liquidity and make the stock more accessible to retail investors.
NMDC Limited Trades Ex-Bonus with 2:1 Issue
NMDC Limited, India’s largest iron ore producer, saw its shares trade ex-bonus on December 27, 2024. The company issued a 2:1 bonus, providing shareholders with two additional shares for each share held. This move, marking NMDC’s first bonus issue in 15 years, is intended to reward shareholders and improve stock liquidity.
Dhanlaxmi Bank Initiates Rights Issue
Dhanlaxmi Bank’s shares turned ex-rights on December 27, 2024, following the bank’s announcement to raise approximately ₹297.54 crore through a rights issue. Shareholders are entitled to 14 new shares for every 25 shares held, priced at ₹21 per share, which includes a premium of ₹11. The rights issue is part of the bank’s strategy to strengthen its capital base and support future growth plans.
Investor Considerations
Investors should note that the ex-date is crucial for determining eligibility for corporate actions. To benefit from these events, shares must be purchased before the ex-date, as purchasing on or after the ex-date does not entitle the buyer to the announced benefits.
Market Impact
Such corporate actions can influence stock prices and trading volumes. Stock splits and bonus issues often lead to increased liquidity and can attract a broader investor base, while rights issues may impact share value due to the dilution effect. Investors are advised to assess these factors in line with their investment strategies.
