Introduction
Amid the ongoing IPO season, a company named Deep Polymers Limited is coming up with a bonus issue of its equity shares to reward its shareholders. So let us discuss in detail about the company and the details of its upcoming bonus issue.
Deep Polymers Limited Bonus Issue 2022
Following are the details of Deep Polymers Limited bonus issue:
- The company in its meeting recommended a bonus issue of equity shares in the ratio of three fully paid-up equity share of ₹10 each for every four fully paid-up equity shares held by the shareholders of the company as on the record date.
- The record date for the bonus issue has not yet been finalized.
- The company will take the approval from shareholders regarding the bonus issue.
What are bonus issues?
A bonus issue is a corporate action announced by the company in which it offers free additional shares to the existing shareholders of the company. A company may decide to issue bonus shares to shareholders as an alternative to payment of dividends. An investor will be eligible for receiving bonus shares if he/she has purchased the company’s shares before the ex-date.
As an example of a bonus issue, a company may announce one bonus share for every share held by a shareholder. In this case, the number of outstanding shares of the company will double. As a result, the company’s share price will halve so as to keep the market capitalization unchanged. For, if a company’s market capitalization could increase after the bonus issue, every company would be able to do so by simply increasing its outstanding shares in the market.
About the company
Deep Polymers Limited is engaged in the business of manufacturing antifab filler master batches since its inception in 2004. Over the years, the company has made its mark in the competitive marketplace. The company is led by Rameshbhai Patel.
During FY21, the company earned 72% of its revenues domestically while the rest 28% came from exports. The company’s manufacturing facility is situated in Gandhinagar, Gujarat, and has a capacity of 12,000 MTPA of color masterbatches and 24,000 MTPA of antifab filler compound. Its portfolio includes white filler, lamination grade white filler, natural filler, super brightener filler, and others.
Conclusion
Above discussed are all the details that an investor would need to know about Deep Polymers Limited bonus issue. However, investors can take a decision to participate in this corporate action by doing their own due diligence and owning the company’s shares before the ex-date.
