BSE Approves Generous 2:1 Bonus Share Issue

The BSE Limited board has approved a 2:1 bonus share issue, allowing shareholders to receive two shares for every one they hold. This marks BSE's second bonus issue since its 2017 listing. The shares, issued from reserve funds, aim to enhance earnings and shareholder equity.

In a significant move, the board of India's BSE Limited announced on Sunday that it has approved a 2:1 bonus share issue. Under this arrangement, shareholders will receive two additional shares for every one share they currently hold, pending shareholder approval through a postal ballot.

This is the second instance of a bonus issue by the stock exchange since its listing in 2017, signaling BSE's commitment to rewarding its investors. The exact record date for this issue has yet to be finalized.

The bonus shares will be drawn from the company's Capital Redemption Reserves and General Reserve, as available by the end of 2024. The distribution of these shares comes at no extra cost to existing stockholders, enhancing the company's paid-up capital and leveraging its free reserves strategically.

(With inputs from agencies.)