CDSL Bonus Share: CDSL (Central Depository Services Limited) recently announced its first-ever bonus share issuance in a 1:1 ratio. This means that eligible shareholders will receive one bonus share for each share they hold.
The CDSL bonus share is expected to be issued within two months from the board approval date, on or before September 1, 2024.
As a result of the bonus issuance, the stock price is expected to adjust downward to approximately half of its pre-bonus issue level, assuming all other factors remain constant.
The company’s board also approved an increase in authorized share capital from Rs.150 crore to Rs.300 crore.
CDSL reported a significant increase in consolidated net profit in Q4FY24 compared to the previous year.
The 1:1 CDSL bonus share issuance was the first in the company’s history, and it was a standalone decision by the board of directors.
While there is no explicit policy outlining the frequency or criteria for future bonus issuances, this move suggests that CDSL is open to rewarding shareholders through bonus shares. It’s possible that the company might consider issuing bonus shares again in the future, but this would depend on various factors such as financial performance, profitability, and market conditions.
CDSL’s fundamentals suggest a financially sound and well-positioned company with strong growth prospects. The company’s leadership position, consistent revenue growth, and high profitability make it an attractive investment opportunity.