Linc Limited Stock Split Bonus Issue Record Date on Dec 20: What You Need To Know?

Linc Limited shares will trade ex-date today, December 20, following two significant corporate announcements: a stock split and a bonus issue. Both corporate actions will impact shareholders starting from today.

Linc Limited Stock Split

The company has announced the subdivision (or split) of its equity shares. Each existing equity share with a face value of ₹10 will be split into two (2) equity shares of ₹5 each, fully paid-up. This action will effectively double the number of shares in circulation while reducing the nominal value of each share.

Linc Limited Bonus Issue

Linc Limited has also approved a bonus issue in a 1:1 ratio. This means that for every existing fully paid-up equity share of Rs 5, shareholders will receive one new fully paid-up equity share of ₹5 at no additional cost. Both the record date and the ex-date for these corporate actions have been fixed as December 20, 2024.

What are Bonus Issue and Stock Split?

• Bonus Issue: A bonus issue occurs when a company distributes additional shares to its existing shareholders for free. This is typically done to reward shareholders without altering the overall value of the investment.
• Stock Split: A stock split involves dividing an existing share into smaller units, thereby increasing the number of shares in circulation. The total value of the shareholder’s holding remains unchanged as the price per share decreases proportionally.

Linc Q2FY25 Financial Performance

In Q2FY25, Linc Limited reported a 14% year-on-year (Y-o-Y) increase in profit after tax (PAT), which rose to ₹879 crore from ₹771 crore in Q2FY24. The company’s total income grew by 3.1% Y-o-Y, reaching ₹13,728 crore in Q2FY25, compared to ₹13,315 crore in the same quarter of the previous year (Q2FY24).

Linc’s operating performance also showed positive growth, with earnings before interest, tax, depreciation, and amortisation (EBITDA) rising by 12.2% annually to ₹1,630 crore in Q2FY25, up from ₹1,452 crore in Q2FY24. As a result of the higher EBITDA, the company’s EBITDA margin expanded by 97 basis points (bps), increasing to 11.9% in Q2FY25 from 10.9% in Q2FY24. This indicates improved operational efficiency.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.