Rites Ltd shares in focus for 1:1 Bonus Allotment, Rs 5 per share Dividend

The government-owned company RITES Ltd has declared a 1:1 bonus share allotment for eligible shareholders. Following the bonus issue, the stock price, which was previously around Rs 700, has now fallen below Rs 380.

With the new SEBI regulation requiring a T+2 settlement for bonus shares, when can we expect the RITES bonus shares to be credited to the demat account? Will it happen on Monday, or Tuesday, or will it take 10-15 days?

RITES announced that at their meeting held on September 21, 2024, the company had allotted 24,03,01,887 (Twenty-Four Crore Three Lakh One Thousand Eight Hundred and Eighty-Seven) fully paid-up Bonus Equity Shares of the face value of Rs. 10/- each in the ratio of 1:1 i.e., One (1) fully paid-up Equity Share of Rs. 10/- each for every One (1) existing Equity Share of Rs. 10/- each.

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With a 1:1 bonus issue, the paid-up share capital has doubled to 48,06,03,774 shares, with a face value of Rs 10 each, for Rs 480,60,37,740.

On NSE, during the record date, RITES share price ended at Rs 375.95 apiece, up by 10.8% with a market cap of Rs 18,068.30 crore. Adjusted to the bonus issue, the stock's new 52-week high and low is Rs 412.98 apiece and Rs 216.15 apiece.

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