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SBC Exports Announces 3rd Bonus Issue: 1:2 Ratio Approved by Board

Written by: Team Angel OneUpdated on: Feb 3, 2025, 3:27 PM IST
SBC Exports has announced its third bonus issue, offering one bonus share for every two shares held. The issue is subject to shareholder approval via postal ballot.
SBC Exports Announces 3rd Bonus Issue: 1:2 Ratio Approved by Board
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

SBC Exports Limited has officially approved its 3rd bonus issue, further rewarding its shareholders with additional equity. The company’s Board of Directors, in a meeting held on January 24, 2025, recommended the issuance of 1 bonus share for every 2 shares held (1:2 ratio). This move is subject to shareholder approval through a postal ballot and compliance with regulatory requirements.

This follows previous bonus issues by the company on January 19, 2024 (1:2 ratio) and February 22, 2022 (1:1 ratio), making this the 3rd such initiative in recent years.

SBC Exports shares price made an intraday high of ₹21.45. The stock was trading at ₹21.06 at 9:41 AM on NSE. 

Details of the Bonus Issue

  • Bonus Ratio: 1:2 (one bonus share for every two shares held)
  • Total Bonus Shares Issued: 15.87 crore equity shares
  • Pre-Bonus Share Capital: ₹31.74 crore
  • Post-Bonus Share Capital: ₹47.61 crore
  • Funding Source: Free reserves
  • Allotment Timeline: Within 2 months from Board approval

The bonus shares, once allotted, will carry the same rights as existing shares and will be eligible for dividends and other corporate actions declared after the issuance.

How Will Fractional Shares Be Handled?

In cases where shareholders are entitled to fractional shares, the company has outlined a process to ensure fair treatment. The Board has authorised an Independent Director to hold these fractional shares in trust, sell them at the prevailing market rate, and distribute the proceeds proportionally to eligible shareholders.

Rationale Behind the Bonus Issue

SBC Exports has consistently rewarded its shareholders with bonus issues, reflecting confidence in its financial strength and future growth potential. The latest bonus issue is backed by free reserves of ₹18.58 crore as of September 30, 2024, ensuring the company maintains a strong capital structure while enhancing liquidity for investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Published on: Feb 3, 2025, 3:27 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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