Salasar Techno Engineering’s stock increased when the company announced the issuance of bonus shares at a 4:1 ratio.

The issuance of bonus shares will be enabled by the use of the company’s Securities Premium Account, which will require a total of 126 crores.

Salasar Techno Engineering’s shares rose more than 2.80% to 64.35 on the NSE on Wednesday after the company announced the issue of bonus shares in the proportion of 4:1, that is our new fully paid-up bonus equity shares of the face value of l each will be provided for one existing fully paid-up equity share of the face value of 1 each held by the shareholder.

“Recommended the issuance of bonus shares in the ratio of 4:1 i.e., 4 (four) new fully paid-up reward equity-share of ₹l (Rupees-0ne-only) each for every 1 (0ne) existing fully paid up equity share of ₹1/- (Rupees One only) each held by the Members of the Company as on the Record Date, subject to stockholders and other statutory approvals,” the company told the stock exchanges on Wednesday.

The business further stated that the record date for identifying eligible shareholders will be decided and communicated separately to the exchange.

The issuance of bonus shares will be enabled by the use of the company’s Securities Premium Account, which will require a total of 126 crores for this purpose.

After the bonus issuance, eligible shareholders can expect to receive bonus shares two months later.

Salasar Techno Engineering debuted on the public exchanges in 2017, with the distinction of being the most subscribed IPO in the Indian markets at the time, with an aggregate subscription of 273.05 times.

Salasar Techno Engineering’s shares are now down 3.1%, trading at 59.45. Nonetheless, the stock has seen a 10% boost in value so far in 2023.

On December 18, the firm announced that the board of directors is considering issuing bonus shares to eligible owners. 

According to Mint, “Pursuant to Regulation 29 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 and other applicable provisions, if any, notice is hereby given that the meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, 20th day of December 2023, at 12:30 p.m. at its office situated at Plot No. B-8, 913-916, 9th Floor, Tower-B, Noida One, Sector-62, Noida, UP-201301, inter alia, to consider and recommend a proposal of declaration of bonus shares to the shareholders of the company subject to requisite approvals,” the company said on Monday.