5:1 stock split: This pharma company to consider issuance of bonus - Check details

Bonus Share 2024: The board of directors of the multibagger pharmaceutical stock Remedium Lifecare is expected to approve the issuance of bonus shares. According to an exchange filing, the meeting of the board of directors of the company is scheduled to be held on May 10, 2024. 

"The meeting of the board of directors of the company is scheduled to be held on Friday, May 10 2024, inter alia to consider recommendation and approval of the issue of bonus shares to the existing equity shareholders of the company," the company said in an exchange filing.

Earlier, the board approved the subdivision of stock in the ratio of 5:1 i.e. an equity share of Rs 5 will be split into five equity shares of face of Re 1 each.
 
"Sub-division of Face Value of Equity Shares from Rs. 5/- each to Face Value of Re. 1/- each," the filing said.

The company had fixed February 23 as a record date for this corporate action. 
 
The record date is important as it helps a company finalise the list of shareholders eligible for its corporate action like payment of dividends or stock split.

What is a Stock Split?

A stock split occurs when a company issues more shares to increase the stock's liquidity. As a result, the number of shares increases but the company’s total value is the same before and after a split.