Hello friends!
Welcome to my blog again. After a long time i am going to share about stock market and my trading journey . Hope you all are doing well and enjoying yourself. I'm also good and enjoying every aspect of my life :-)
Yesterday powergrid corporation of india gave bonus share in the ratio of 1:3. It means one bonus share given by the company for every three share helds. Means 1 additional share given by company for 3 share. Yesterday means on 12 August every shareholder received that bonus share including me😄
Second time this company gave bouns share. In 2021 company also gave bonus share in the same ratio 1:3.
Powergrid corporation of India Ltd is an profit making indian central public sector company, power generation /distribution based company under the ownership of ministry of power and govt of India. Indian president hold it's 51 % of share. It's headquarter in gurugram.
Powergrid corporation Share listed on both BSE and NSE . Yesterday when company gave bonus share , price falls to 203 from 264.5 . Today it close at 193.20 Indian rs. I consider it's a good time for a fresh entry😅
Bonus share is a corporate action, in which company give new free of cost share to its present shareholders. Company gives these bonus share from there accumulated profits.
It's because a bouns issue increase a company's outstanding share but not it's market capitalisation, because company do not recieve any cash while issuing bonus share. So stock price adjust proportionally to the additional share issued. Hence the price fall down on the date to ex-bonus.
@mysteriousroad