NewsCorporate ActionsUsha Financial Services Announces Last Trading Day for 1:1 Bonus Issue EligibilityUsha Financial Services Announces Last Trading Day for 1:1 Bonus Issue Eligibility
Usha Financial Services has set Monday as the final trading day for investors to qualify for its 1:1 bonus share issue. The record date and ex-bonus date are set for August 19. Shareholders will receive one additional share for every existing share held, effectively doubling their shareholding at no extra cost. This move is expected to increase shareholding, improve stock liquidity, and adjust the market price proportionally, while maintaining the company's overall valuation.
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Usha Financial Services has set a crucial deadline for investors looking to capitalize on its upcoming bonus share issue. The company has announced that Monday will be the final trading day for investors to purchase shares and qualify for the generous 1:1 bonus issue.
Key Dates for Investors
| Date Type | Date |
|---|---|
| Last Trading Day | Monday |
| Record Date | August 19 |
| Ex-Bonus Date | August 19 |
Bonus Issue Details
The company is offering a 1:1 bonus issue, which means shareholders will receive one additional share for every existing share they hold as of the record date, at no extra cost. This move effectively doubles the shareholding for existing investors without any additional investment on their part.
For example:
- An investor holding 100 shares will receive 100 additional bonus shares
- Their total shareholding will increase to 200 shares post-bonus issue
Impact and Implications
The bonus issue is designed to reward existing shareholders and is expected to have several effects:
Increased Shareholding: Investors will see their number of shares double without any additional cost.
Improved Liquidity: The increased number of shares in circulation is likely to enhance the stock's liquidity in the market.
Market Price Adjustment: While the number of shares will increase, the market price typically adjusts downward proportionally to reflect the increased share count. This adjustment maintains the overall investment value for shareholders.
No Change in Company Valuation: It's important to note that a bonus issue doesn't change the fundamental value of the company. It simply redistributes the existing value across a larger number of shares.
Investors interested in participating in this bonus issue should ensure they complete their share purchases by the end of Monday's trading session. Those who are listed as shareholders on the record date of August 19 will be eligible to receive the bonus shares.
This corporate action by Usha Financial Services demonstrates the company's commitment to creating value for its shareholders and potentially attracting new investors through improved stock liquidity.
Historical Stock Returns for Usha Financial Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +10.85% | -1.03% | -31.28% | -69.20% | -69.20% |
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