Bonus Issue: Inox Wind shareholders to get three free shares for every one held

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Inox Wind Ltd.’s board has approved the issue of three bonus shares for every one share held at its board meet on Thursday, it said in an exchange filing.

Record date for the bonus issue is yet to be determined. This is the first ever bonus issue announced by the company.

The company will also issue 632 equity shares of Inox Wind for every 10 equity shares held of Inox Wind Energy. Additionally, 632 share warrants with an issue price of ₹13.5 each will also be issued for every 10 share warrants of Inox Wind Energy Ltd. with an issue price of ₹847 each.

Companies issue bonus shares to capitalise on their free reserves, increase their Earnings Per Share (EPS) and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.

Last year, Inox Wind’s board had approved the scheme of amalgamation of Inox Wind Energy into Inox Wind. Shareholders of Inox Wind Energy received 158 equity shares of Inox Wind for every 10 shares held.

Shares of Inox Wind are trading 6.6% higher at ₹642.7. The stock has now surged 500% in the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow