Shares of Nazara Technologies Ltd. rose on Friday morning, trading at Rs 282.90, up Rs 3.90 or 1.40 per cent at 10:00 am, as the stock began trading ex-bonus and ex-split. This follows the company’s recent 1:1 bonus issue and 1:2 stock split, with September 25 being the last day to buy shares to qualify for these corporate actions.
From 10 shares to 40: How the corporate actions work
The stock split reduced the face value of each share from Rs 4 to Rs 2, doubling the number of shares held by investors. The subsequent 1:1 bonus issue grants one bonus share for every post-split share. For instance, an investor holding 10 shares before the split now holds 20 after the split and receives 20 bonus shares, bringing the total to 40.
Corporate history and investor impact
This is Nazara Technologies’ first-ever stock split and its second bonus issue, the first being in June 2022. Corporate actions like these are aimed at improving liquidity and making the stock more accessible to a wider pool of investors. Analysts expect these measures to encourage trading activity and attract retail participation.
Investor guidance
Shareholders under the T+1 settlement cycle needed to ensure their shares were credited to their demat accounts before the ex-date to be eligible for the bonus and split. Market participants are closely monitoring the stock’s price movement post these corporate actions.
