Shares of IRB Infrastructure Developers Limited surged over 10% in today’s trading session as the stock adjusted for its recently announced bonus issue. The sharp movement comes in line with the stock turning ex-bonus, a key milestone in the corporate action timeline. As of 10:10 AM, the shares were trading 9.77% higher at Rs 22.47.
The company had earlier announced a bonus issue in February, marking a significant reward for its shareholders. The ex-date for the bonus issue falls on Monday, while the record date has been fixed as Wednesday, April 1.
Understanding the timeline is crucial for investors. The ex-date is typically set one business day before the record date. Investors who purchased IRB Infra shares before the ex-date will be eligible to receive bonus shares. On the other hand, those buying shares on or after the ex-date will not qualify for the benefit.
In this case, only shareholders who held IRB Infra shares in their demat accounts by the end of Friday will be eligible for the bonus allotment. Any purchases made on Monday or later will not be considered for the corporate action.
The bonus issue has been announced in a 1:1 ratio, meaning shareholders will receive one additional share for every one share they hold as of the record date. This effectively doubles the number of shares held by eligible investors, although the overall investment value remains unchanged due to price adjustment.
This marks the first time IRB Infra has issued bonus shares. Previously, the company undertook a stock split in February 2023, where it subdivided one equity share of ₹10 face value into 10 shares of ₹1 each, enhancing liquidity and retail participation.