Berger Paints India Limited (Berger Paints) announced on August 8, 2023 that its board of directors has approved a bonus issue of one equity share for every five held. The bonus issue will be in the ratio of 1:5, i.e., for every five equity shares held, one equity share will be issued as bonus.
The bonus issue will be funded out of the company’s free reserves. The bonus shares will be issued to shareholders as on the record date, which will be announced later. The bonus shares are expected to be issued in the month of September 2023.
The bonus issue is a positive development for Berger Paints shareholders. It will increase the number of shares held by shareholders without any additional cost. This will improve the liquidity of the shares and make them more attractive to investors.
The bonus issue is also a sign of the company’s financial strength. It shows that the company has sufficient reserves to fund the bonus issue. This is a positive sign for the company’s future prospects.
The bonus issue is expected to boost the sentiment for Berger Paints shares. The shares are likely to trade higher in the near term. Investors who are looking for long-term investments can consider buying Berger Paints shares.
Here are some of the key benefits of the bonus issue for Berger Paints shareholders:
- Increase in the number of shares held without any additional cost.
- Improved liquidity of the shares.
- More attractive to investors.
- Sign of the company’s financial strength.
- Likely to boost the sentiment for Berger Paints shares.
Overall, the bonus issue is a positive development for Berger Paints shareholders. It is a sign of the company’s financial strength and it is likely to boost the sentiment for the shares in the near term.thumb_upthumb_downshareGoogle it