This means that the shareholders will receive four additional shares for every one share held. The ex-date for this bonus issue is Friday, August 29, 2025.
The ex-date is crucial for investors since only those holding shares before the ex-date are eligible for the bonus allotment. Transactions made today, August 28, will reflect in the shareholders’ demat accounts before the ex-date, thus qualifying them for the entitlement.
Any shares bought on or after the ex-date will not carry the bonus benefit.
The bonus issue from Karnika Industries may be seen as a shareholder-friendly move, aimed at increasing retail participation and enhancing liquidity in the counter.
Bonus shares are issued by companies from their free reserves to existing shareholders without any additional cost. Though the face value of each share remains unchanged, the overall number of shares held increases, leading to a proportional adjustment in share price post-bonus.Such a high bonus ratio, 4:1, usually signals strong confidence from the company’s management in its future earnings and performance outlook. However, it is also advised to the investors to also keep an eye on the fundamentals rather than just the short-term buzz around bonus issues.Investors interested in availing the bonus allotment must ensure they execute their buy orders by the end of today’s session, as any delay may lead to missing out on this attractive corporate benefit.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
