Shares of Grovy India Ltd, a small-cap multibagger stock, are attracting attention today. The company has set October 22 as the original record date for its 3:1 bonus share issue.
However, this date has now been changed to October 23. Today, Grovy India’s stock has hit a lower circuit limit of 5%, trading at an intraday low of Rs 279.80.
Over the past year, the company’s shares have surged by 220%, with a 160% increase in the current calendar year and a 78% rise in the last six months.
Company’s Statement on Bonus Shares
In a statement to the stock exchanges, Grovy India announced, “You are informed that the company has fixed Wednesday, October 23, 2024, as the record date for bonus shares in the ratio of 3:1.
” This means that eligible shareholders will receive three additional shares for every one they own. According to Trendline data, this is the company’s first issuance of bonus shares.
Purpose of Bonus Shares
Companies usually issue bonus shares to utilize their free reserves, enhance earnings per share (EPS), and increase paid-up capital while reducing their reserves.
These bonus shares, often referred to as free shares, are given to shareholders at no extra cost.
Grovy India is a real estate development company focused on constructing residential buildings in South Delhi and commercial properties in the NCR region.