Up 181% in 1 year! Multibagger stock declares 1:2 share split and 1:1 bonus issue

The Board of Maan Aluminium has approved the split of its equity shares and also declared a bonus issue to investors. The stock split will be in proportion of 1:2.

“The Board has recommended sub-division of 1 equity share of the company having face value of Rs 10 each into 2 equity shares of the company having face value of Rs 5 each,” the company said in a filing.

The record date for the proposed stock split will be intimated in due course.

A stock split is usually done to increase the liquidity of the stock in the market. On the record date, investors who are holding the stock until the record date will receive the new shares in demat accounts and the stock price will be adjusted according to the split ratio.

Further, the Board has also approved a bonus issue of equity shares in the proportion of 1:1.

“The Board has recommended issuing 1 bonus share for every 1 equity share held by the equity shareholders of the company as on record date by way of capitalization of free reserves,” the company said.

The bonus issue is subject to the approval of members at the annual general meeting (AGM).The bonus shares will carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and either corporate actions.

A company issues bonus shares for shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.

Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.

All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.

Maan Aluminium produces aluminum extrusions. The company manufactures products for the automobile, automation, air conditioning, construction, and scaffolding industries.

The company’s shares have nearly tripled investors’ wealth in the last year period, rising as much as 181%. So far this year, it is up about 91%.