KPI Green Energy shares trade ex-date today for bonus issue; stock falls over 4%

Shares of KPI Green Energy began trading ex-date today for a 1:2 bonus issue, resulting in a drop of over 4 per cent in the stock's value. The stock hit an intraday low of Rs 545.55 on the BSE.

What does the ex-date mean for shareholders?

The ex-date is crucial for determining shareholder eligibility for receiving bonus shares. To be eligible for the 1:2 bonus issue, investors need to hold KPI Green Energy shares in their demat account by today, January 3, 2025. Anyone purchasing shares after this date will not qualify for the bonus issue.

Bonus issue details and record date

The company announced the bonus issue in the ratio of 1:2, meaning shareholders will receive one bonus share for every two shares held. The record date for eligibility is January 6, 2025. To be part of the bonus distribution, investors must ensure their shares are in the demat account by this date.

Stock performance and market response

Despite the bonus announcement, KPI Green Energy's stock has been on a downtrend. It saw a notable decline of 4.6 per cent in early trading today. In the past year, the stock has gained a remarkable 77.8 per cent, though it has faced an 8 per cent drop over the last six months.

KPI Green Energy’s bonus issue history

This marks the third time KPI Green Energy has issued bonus shares. Previously, the company issued a 1:2 bonus share in February 2024, and a 1:1 bonus issue in 2023. These actions demonstrate the company's commitment to rewarding shareholders with additional equity, though the market response to today's announcement has been mixed.

What investors should know

Shareholders buying today, after the ex-date, are not eligible for the bonus shares. For those looking to benefit from this issue, it is crucial to make purchases prior to the ex-date and wait for the distribution.