Shares of IRB Infrastructure Developers Ltd. surged over 10 per cent on Monday, March 30, after the stock began trading adjusted for the bonus issue of shares. The stock hit an intraday high of Rs 22.70 apiece before it gave up some gains to trade 8.16 per cent higher at 22.14 as of 09:57 AM. The company has fixed Wednesday, April 1, as the record date for the bonus issue. Monday is the ex-date for the same.
IRB Infrastructure Developers approved a bonus issue in the ratio of 1:1 on February 13 this year, entitling eligible shareholders to receive one additional share for every share held as of the record date. This marks the company’s first-ever bonus issue. Previously, IRB Infra had undertaken a stock split in February 2023, when it subdivided each equity share with a face value of Rs 10 into ten shares of Rs 1 each.
IRB Infrastructure’s stock has delivered strong short‑term outperformance compared with the broader market. Over the past week, the stock gained 10.49 per cent, sharply ahead of the 0.80 per cent rise in the NIFTY 500. In the one‑month period as well, IRB advanced 6.57 per cent, bucking the broader index decline of 10.09 per cent. On a year‑to‑date basis, the stock remains in positive territory with gains of 5.46 per cent, while the NIFTY 500 has fallen 12.88 per cent.
That said, performance has been mixed over the medium term. Over the past one year, IRB shares slipped 1.55 per cent, slightly underperforming the NIFTY 500’s 2.39 per cent decline. However, the long‑term trend remains decisively positive, with the stock surging 83.72 per cent over three years versus 45.20 per cent for the index, and delivering a sharp 329.98 per cent return over five years, far outperforming the NIFTY 500’s 68.15 per cent gain, underscoring strong long‑term wealth creation.
The ex‑date falls one business day before the record date. To qualify for any corporate action announced by the company, such as a bonus issue, dividend payout or stock split, investors must purchase the shares before the ex‑date. Shares bought on or after the ex‑date do not carry entitlement to the announced benefit.
The record date is the cut‑off date used by the company to identify shareholders eligible for the corporate action. If shares are purchased on or after the ex‑date, the transaction will not settle in time for the buyer to appear on the company’s records, making them ineligible for the proposed corporate benefit.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
