Central Depository Services (India) shares surged 5.98% to a record high of Rs 2,955 apiece after the company announced a 1:1 bonus share issue on Monday. The company’s board approved the issuance of bonus shares, which will be credited to shareholders on or before September 1, 2024.
The bonus share issue is a significant development for the company, which has seen its share price rise by 56.93% on a year-to-date basis. The move is expected to increase the company’s share capital to Rs 209 crore.
However, not all analysts are bullish on the stock. While three recommend a ‘buy’, five suggest a ‘hold’, and one advises a ‘sell’. The average 12-month consensus price target implies a downside of 20.3%.
Despite the mixed views, the bonus share issue is a positive development for shareholders, who will see their holdings increase. The move is also expected to boost liquidity in the stock, making it more attractive to investors.
