Bharat Rasayan, a prominent player in India’s agrochemical industry, has announced two significant corporate actions that have generated buzz among investors:
A 1:1 Bonus Issue
Face Value will change from ₹10 to ₹5
Both actions will take effect on December 12, 2025 (Ex-Date). If you are an existing shareholder or planning to invest, understanding these changes is crucial. Let’s break it down step by step.
What Is a Bonus Issue?
A bonus issue is when a company rewards its shareholders by issuing additional shares free of cost. Bharat Rasayan has declared a 1:1 bonus, which means for every 1 share you hold, you will receive 1 extra share.
Example:
- If you own 10 shares, you will get 10 more shares, making your total 20 shares after the bonus issue.
- These shares are credited automatically to your demat account; you don’t need to pay anything extra.
What Is a Stock Split?
A stock split reduces the face value of each share and increases the number of shares proportionately. Bharat Rasayan is splitting its shares from ₹10 to ₹5, which means each existing share will become two shares.
Example:
- After the bonus issue, if you have 20 shares, the split will double them to 40 shares.
- This does not change the company’s market capitalization or your total investment value. It simply increases the number of shares and lowers the price per share.
Important Dates and Eligibility
- Ex-Date: December 12, 2025
- Record Date: December 12, 2025
- Cut-off for Buying Shares: December 11, 2025
India follows a T+1 settlement cycle, meaning trades settle the next day. To qualify for both the bonus and the split, you must buy shares by December 11, 2025. Any purchase on or after December 12 will not make you eligible.
Impact on Shareholders
Let’s take a practical example:
- Suppose you own 10 shares at ₹10 face value before the corporate actions.
- After this , you will have 20 shares.
- After the stock split, those 20 shares will become 40 shares.
However, the total value of your investment remains the same immediately after these actions. Why? Because the share price will adjust downward to reflect the increased number of shares. If the price was ₹10,000 per share before, it will reduce proportionately after the bonus and split.
Why Is Bharat Rasayan Doing This?
1.Improve Liquidity
By increasing the number of shares in circulation, the stock becomes more liquid. This means easier buying and selling for investors.
2.Enhance Affordability
A lower share price after the split makes the stock more affordable for retail investors, potentially attracting more participation.
3.Positive Market Sentiment
Bonus issues and stock splits often create positive sentiment, as they signal confidence in the company’s growth and financial health.
What Should Investors Do?
- If you already hold shares: You will automatically benefit from both actions.
- If you plan to buy: Make sure you purchase by December 11, 2025 to qualify.
Long-term view: These actions do not change the company’s fundamentals. They simply make the stock more accessible and liquid. Focus on Bharat Rasayan’s business performance and growth prospects for long-term gains.
Key Takeaways
Bonus Issue: 1 extra share for every 1 share held.
Stock Split: Face value changes from ₹10 to ₹5, doubling your share count.
Ex-Date: December 12, 2025.
Eligibility: Buy shares by December 11, 2025.
Impact: More shares, lower price per share, same total investment value.
These corporate actions are generally seen as shareholder-friendly moves. They don’t increase your wealth instantly, but they make the stock more attractive and easier to trade, which can benefit you in the long run.
Disclaimer:
This narrative is solely intended for educational reasons. The opinions and suggestions are not those of Mint, Before making any financial decisions, we suggest investors to speak with qualified specialists. ( THIS POST IS FOR EDUCATIONAL PURPOSE ONLY)