Since the shares are trading ex-bonus today, the price of BSE shares increased by around 5% during intraday trading on Friday. But according to certain trading applications, Multibagger’s stock had dropped 67% in the morning. The news that bonus stocks will be distributed to qualifying shareholders in a 2:1 ratio is indicative of the sharp drop in the company’s stock price.

The shares were trading at Rs 2455.50 at roughly 10:05 am, up 5.27% or 123 rupees from the NSE closing price of Rs 2,332.50 the day before.

The BSE has issued two shares with a face value of Rs 2 for each share held on the record date with a face value of Rs 2. Only stockholders who held shares on the record date would get bonus shares of BSE. Investors who buy stock on or after the ex-demerger date will not be eligible.

Extra Shares

Since the company’s IPO in 2017, the board has considered issuing bonus shares twice. For every share that a shareholder had in 2022, the oldest stock exchange in Asia awarded them two bonus shares (2:1).

In order to capitalize on their free reserves, the firms issue bonus shares, decrease their reserves, and increase their paid-up capital and earnings per share (EPS). Because they are given to stockholders at no additional cost, these shares are also known as free shares.

Only investors who buy the stock before the ex-date will be eligible for bonus shares. If an investor purchases shares on the ex-date or later, they will not be entitled for bonus shares.

Since becoming public, BSE has paid dividends totaling more than ₹170 per share and twice repurchased equity shares, in 2019 and 2023.

The Tuesday NSE contract expiry date may be taken into consideration by SEBI.

The BSE stock fell 4% on Thursday after it was announced that SEBI is considering the NSE’s suggestion to use Tuesday as the new expiration day. According to a CNBC-TV18 report, a SEBI circular on index expiration schedules would be issued shortly. Tuesday is most likely the expiry date that the NSE is searching for.