Pidilite Industries , a leading adhesives manufacturer, saw its shares undergo a significant price adjustment following the implementation of a 1:1 bonus issue. The stock price moved from Rs 3,037.75 to Rs 1,493.35, reflecting an apparent 51% decline that was actually a result of the bonus share distribution.

Bonus Issue Details

Pidilite Industries declared a bonus issue, offering shareholders one additional share for every share held. The record date for this corporate action was set as September 23, with investors needing to purchase shares by September 22 to qualify for the bonus shares.

Impact on Share Price

The sharp drop in share price is a direct consequence of the bonus issue implementation, effectively doubling the number of outstanding shares while halving the price per share. This adjustment ensures that the overall market capitalization of the company remains unchanged.

Trading Activity

As of 10:30 AM on the day of the announcement, Pidilite's stock was trading 1.5% lower at Rs 1,496.25, indicating some market reaction to the bonus issue implementation.

Historical Context

This bonus issue marks Pidilite's first such corporate action since March 2010. The company's decision to issue bonus shares is typically aimed at enhancing retail participation and improving stock liquidity.

Recent Stock Performance

Despite the recent price adjustment, Pidilite's stock has shown mixed performance over different time frames:

Investor Implications

The bonus issue effectively rewards existing shareholders by increasing their number of shares without requiring additional investment. While the per-share price has adjusted downward, the total value of an investor's holding remains unchanged, barring normal market fluctuations.

Investors and market participants are advised to take note of this corporate action when evaluating Pidilite's stock price movements and historical data to ensure accurate comparisons.

Pidilite Industries has announced that Monday will be the final trading session for investors to purchase shares and qualify for the company's upcoming bonus issue. This move comes as part of a broader corporate action that also includes Time Technoplast.

Bonus Issue Details

Pidilite Industries, known for its popular adhesive brands like Fevicol and M-Seal, will issue one free bonus equity share for every fully paid-up equity share held. The bonus shares will have a face value of Rs 1.00 each. The company has set Tuesday, September 23, as the record date to determine eligible shareholders for this bonus issue.

Important Dates

| Event | Date | |:-------------------------------------|:------------------------------|: | Last Day to Buy | Monday (before record date) | | Record Date | Tuesday, September 23 | | Bonus Shares Credit Date | Wednesday, September 24 | | Trading Availability of Bonus Shares | From September 25 |

T+1 Settlement Cycle

It's crucial for investors to note that under India's T+1 settlement cycle, shares must be purchased at least one trading day before the record date to qualify for the bonus issue. This explains why Monday is the last day for investors to buy Pidilite Industries shares to be eligible for the bonus.

About Pidilite Industries

Pidilite Industries is a leading manufacturer of adhesives, sealants, construction chemicals, and industrial chemicals in India. The company is renowned for its household brands such as Fevicol and M-Seal, which have become synonymous with adhesives in the Indian market.

Concurrent Action by Time Technoplast

In a similar move, Time Technoplast has also announced a bonus issue with the same timeline. The company will offer one free bonus equity share of Rs 2.00 face value for every share held, with the same record date as Pidilite Industries.

This concurrent action by two different companies highlights a period of corporate activity in the Indian stock market, potentially aimed at rewarding shareholders and increasing liquidity in their respective stocks.

Investors interested in participating in these bonus issues should ensure they complete their share purchases by the end of Monday's trading session to meet the eligibility criteria set by both Pidilite Industries and Time Technoplast.