Ek Pe Ek Free! Small Electrical Stock Ex-Date For Bonus Issue 1:1: Check Eligibility, New Price & Do You Own?

Ram Ratna Wires is a small-cap stock listed on BSE and NSE. The company is engaged in other electrical equipment businesses. Ram Ratna Wires stock was in focus on December 26 as it turned ex-date for its bonus issue ratio of 1:1. This means that the company will deliver 1 free share on existing 1 share to eligible shareholders. How do you know, if you are eligible or not?

Ram Ratna Wires Share Price:

After closing bell on December 26, Ram Ratna Wires shares closed at Rs 320.65 apiece on BSE, up by 0.33% with market cap of Rs 2,993.24 crore. The price-to-equity ratio stood at 45.70x. while return on equity is at 15.23%.

Ram Ratna shares are closing the gap towards its 52-week high of Rs 393.43 apiece.

Ram Ratna Wires Bonus Issue:

The company turned ex-bonus on December 26 for its bonus issue in the proportion of 1:1 i.e. 1 (one) equity share of Rs. 5/- each for every 1 (one) fully paid-up equity share of Rs. 5/- each.

Who Will Be Eligible? Only those investors will be eligible who hold Ram Ratna Wires stock in their portfolio as of the record date.

The record date is also December 26.

In total, the company is aiming to deliver 4,66,26,536 equity shares of face value of Rs. 5/- each as bonus to investors worth Rs 23,31,32,680/-.

Here are key benefits of bonus issues in both the investor and company perspectives, as per Nirmal Bang:

From Investor's Point of View:

1) Investors do not have to pay any tax while receiving bonus shares from the company.

2) Bonus shares are considered beneficial for long-term shareholders of the company looking to multiply their investment.

3) Bonus shares are free of cost to shareholders, as they are issued by the company, which increases the outstanding shares of an investor in the company and enhances the liquidity of the stock.

4) Bonus shares help build the trust of an investor in the company's business and operations because they have invested in the company and, in turn, gives capital to the investor.

From Company's Point of View

1) The issue of bonus shares enhances the company's value and increases positions and image in the market, gaining the trust of existing shareholders and attracting several small investors to be a part of the stock market.

2) The companies have more free-floating shares with the issue of bonus shares in the market.

3) Issue of Bonus shares benefits companies to get themselves out of the situation where they are not able to or simply not prefer to pay cash dividends to their shareholders.

About Ram Ratna Wires Ltd:

Ram Ratna Wires is the manufacturer of winding wires, mainly enamelled copper wires.

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