CONCOR had earlier declared a bonus issue where it issued one free share for every four held. The state-run company set July 4 as the record date for its 1:4 bonus issue.
Ex-bonus is the date on which a stock starts trading without the entitlement to a recently declared bonus issue. This means that shareholders, who have the stock in their portfolio at the end of Thursday’s closing, will be eligible for the stock split.The companies issue bonus shares to capitalise on their free reserves, increase their Earnings Per Share (EPS) and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.
CONCOR has missed its guidance for the recently concluded financial year by a big margin.
For the full fiscal, CONCOR reported total volume growth of 8%, which is well below the company’s guidance, which was between 18% to 20%.
The government is the single largest shareholder of CONCOR, with a 54.8% stake.
Shares of Container Corporation are currently trading flat at ₹596.30. The stock has fallen 4% on a year-to-date basis.
