Surya Roshni trades ex-bonus today; shares in spotlight

Surya Roshni's shares are trading ex-bonus today, with January 1, 2025, set as the record date for its 1:1 bonus share issue. This marks a milestone for the company as it issues bonus shares for the first time. Eligible shareholders will receive one bonus share for every share held, effectively doubling the total shares in circulation without altering the market capitalization or ownership structure.

Bonus share details
The company has received in-principle approvals from BSE and NSE for the allotment of 10.88 crore equity shares with a face value of Rs 5 each. Surya Roshni plans to allot the bonus shares by January 2, 2025, and list them on exchanges by January 3, 2025. This move aligns with the company’s strategy to reward long-term shareholders and enhance liquidity in its stock.

Performance snapshot
Surya Roshni shares have faced a challenging year, declining 25.85 per cent over the past twelve months. Despite this, the company’s market capitalization stands at Rs 6,470.86 crore. The bonus issue aims to restore investor confidence and drive participation in the stock.

Company profile
Founded in 1973, Surya Roshni operates in the ferrous metals sector and is a key player in steel pipes, lighting products, and export incentives. With its diversified product portfolio and focus on expansion, the company continues to remain a prominent small-cap entity.

Implications of the bonus issue
The 1:1 bonus issue will increase the number of outstanding shares, potentially boosting trading volumes and enhancing affordability for retail investors. However, it does not alter the intrinsic value of the stock, as the share price is expected to adjust proportionally.

As Surya Roshni’s stock garners attention today, market participants will be keenly watching the trading activity and its impact on investor sentiment following the ex-bonus adjustment.