What Is The Brigade Enterprises Bonus Issue?
Brigade Enterprises had announced along with its quarterly results that it will be issuing bonus shares to shareholders in the ratio of 1:3.
This means that eligible shareholders will be entitled to one free share for every three shares that they own as on the record date, which was fixed as June 17.
What this also means is that shareholders who had shares of Brigade in their demat account as of closing on Tuesday, June 16, will be eligible to receive the bonus shares. Those who buy shares of Brigade today, will not be eligible to avail the bonus shares.
How Will The Brigade Shares Adjust Ex-Bonus?
For example, if an investor has 30 shares of Brigade Enterprises as on the record date, he / she will be eligible to receive 10 additional shares as bonus (1:3).
This will take the total number of shares that the investor has to 40. The stock price of the company will also adjust accordingly to the bonus ratio.
Who Owns Shares of Brigade Enterprises?
Brigade Enterprises is a closely owned stock, where promoters have a 41.1% stake at the end of the March quarter, as per the company’s shareholding pattern on the BSE.
India’s Domestic Mutual Funds have a 22.29% stake in the company, led mainly by ICICI Prudential MF, Kotak MF, Nippon Life India MF, Franklin India MF, UTI MF, SBI MF and Axis MF.
Foreign Portfolio Investors own a 16.75% stake in the company, leaving little free float for the market.
As many as 1.5 lakh small retail shareholders, or those who have authorized share capital of up to ₹2 lakh, have a 3.8% stake in the company.
Shares of Brigade Enterprises ended 5.7% higher on Tuesday at ₹723. The stock has gained 10% over the last one month but is still down 20% so far on a year-to-date basis.
