Shares of KPI Green Energy began trading on an ex-bonus basis on Friday, January 3, 2025, for the company’s 1:2 bonus share issue. Following this, the stock witnessed a decline of 2.4%, reaching an intraday low of ₹558.60 on the BSE.
Details of the Bonus Issue
As per the company’s announcement and regulatory filings:
- The record date for determining shareholder eligibility for the bonus issue was set for January 3, 2025.
- Eligible shareholders will receive 1 bonus share for every 2 shares held.
This bonus issue aligns with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Companies Act, 2013.
Stock Performance and Market Reaction
While the ex-bonus adjustment has factored into the stock price, the decline reflects typical market behavior as shares adjust to the increased number of shares in circulation. Despite the drop, bonus issues are generally viewed positively, as they enhance liquidity and signal management’s confidence in the company’s growth prospects.
What Lies Ahead
Investors are now watching KPI Green Energy’s upcoming quarterly results and operational updates for further clarity on its performance trajectory. The bonus issue is expected to bolster investor participation and increase trading volumes in the long term.