Shares of Avantel Ltd fall over 4% 273 each on the BSE on the record date for its 3:1 bonus share issue. The stock began trading ex-bonus on Friday, June 17, 2022. Bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.
The board of directors last month (3:1) 3 . Considered, approved and recommended the issue of bonus share For every 1 equity share held by the equity shareholders of the company as on the record date. The company had set Monday, June 20, 2022, as the record date for ascertaining the eligibility of shareholders to be entitled to issue bonus shares.
Bonus shares once allotted shall be of equal status in all respects and shall have the same rights as existing equity shares and shall be entitled to participate fully in any dividend and other corporate action, recommended and declared, if any, issued. and after allotment of such bonus shares, the company said.
The bonus shares will be credited/remitted within 2 months from the date of approval of the Board, i.e. by July 06, 2022, Avantel further stated in the exchange filing.
The Bonus Equity Shares will be issued from the Open Reserves, Retained Earnings and Securities Premium Account available up to March 31, 2022. As of March 31, 2022, the free reserves, retained earnings and securities premium account is 79,66,44,996, according to the company’s statement.
Avantel is a satellite communications and wireless systems provider, offering telecommunications products and software solutions. Avantel shares have been given multibagger returns By rallying more than 110% in a one-year period, while the stock is up nearly 59% so far in 2022 (year-to-date or YTD).