Kitex Garments has made a public announcement regarding a Bonus Issue in the ratio 2:1. This means that eligible shareholders as on the record date which is 17 January 2025 will be receiving 2 share(s) for every 1 share(s) held. The detailed announcement by the company can be found here.
Please find some helpful FAQs on the bonus issue of Kitex Garments below:
1. How to get bonus shares of Kitex Garments?
If you hold the shares of Kitex Garments as on the record date which is 17 January 2025, then you are eligible for the bonus issue.
2. What happens if you sold the shares of Kitex Garments on the record date?
Even if you sold the shares of Kitex Garments on the record date which is 17 January 2025, then also you will get the bonus shares as the settlement of the sold shares will happen on the T+1 day.
3. How to participate in the Bonus issue if you are not an existing shareholder of Kitex Garments?
If you are not an existing shareholder of Kitex Garments but want to participate in the bonus issue, make sure to purchase shares of Kitex Garments before the Ex-Date which is 17 January 2025.
4. When will the Bonus shares of Kitex Garments be credited to demat account?
Bonus shares are credited to your demat account on the T+1 day where T day is the Record Date, i.e. 17 January 2025. Hence, from T+2 day, you can begin trading with those bonus shares.
5. What is the impact of Bonus issue on the stock price of Kitex Garments?
On the Ex-Date which is 17 January 2025, the price of the stock gets adjusted due to the bonus. Due to this adjustment, you see a dip in your unrealized profit. The dip is corrected once the bonus shares are approved for listing and are eligible for trading.
6. What is the impact of Bonus issue on the cost price of Kitex Garments in the portfolio?
The cost of acquisition of the Bonus shares is zero as per ITD guidelines. Hence, for the purpose of unrealized P&L the average price is used whereas for realized P&L, FIFO (first in first out) logic is used.
7. If shares of Kitex Garments are bought via MTF, is the shareholder eligible for bonus?
Yes, even if a shareholder has bought the shares of Kitex Garments via MTF, the bonus shares will be issued and the MTF holdings will get automatically updated once the shares are approved for listing
8. If shares of Kitex Garments are bought and pledged for Margin, is the shareholder eligible for bonus?
Yes, even if a shareholder has bought the shares of Kitex Garments and pledge them to get margin, the bonus shares will be issued the pledge holdings will get automatically updated once the shares are approved for listing
What do you think about this Bonus Issue? Feel free to use this thread to discuss.
