The board of this company had declared August 24 as the record date for the release of bonus shares. The depository service provider company announced in July that it will issue one bonus share for every share held.
Let us tell you that the company is going to give bonus shares to its shareholders for the first time. The company will use free reserves including general reserves and retained earnings to issue bonus shares.
Companies issue bonus shares to their investors as a thank you for their continued trust. Companies issue bonus shares to encash their free reserves, increase earnings per share (EPS) and paid-up capital as well as reduce reserves. These shares are issued without any additional cost to the shareholders and hence are also known as free shares.
Central Depository Services (India) Ltd's March quarter net profit rose 52% compared to FY23. Profit doubled to Rs 129 crore during the quarter. Total revenue for the quarter also increased by 86 percent to Rs 267 crore compared to last year. Total revenue for the full year was up 46% year-on-year.
Shares of Central Depository Services (India) Ltd rose 4.6% to close at Rs 2566. The stock's 52-week high is Rs 2594. The stock is at a 52-week high.
The stock is up 40% in the past six months and 42% so far in 2024. ICICI Securities has assigned a hold tag on the stock. The brokerage's target price for the stock is Rs 2,235. In this context the stock may fall.
Note: Do not invest in stock market without knowledge. Before investing in any shares you should talk to your financial advisor once. If you do not do so, you may suffer financial loss.
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