CDSL shares rally nearly 3% ahead of bonus issue

The company announced the approval of a bonus issue on August 17, 2024. CDSL announced that the shareholders of the company have approved to issue one fully paid-up equity share with a face value of ₹10 each for each existing fully paid-up equity share of ₹10 each. As a result, the CDSL will issue bonus shares in a ratio of 1:1.

The CDSL bonus share record date is August 24, 2024. For investors to be eligible to receive bonus shares of the company, the shares of CDSL should be in an investor’s demat account by August 23, 2024. As the record date approached the CDSL stock price rose by 2.15% on Thursday at ₹2,927 per share, the stock price has risen over 27% in the past month.

Under the bonus issue, CDSL will issue a total of 10,45,00,000 equity shares with a face value of ₹10 each. The company reported that the bonus shares will be issued by the capitalisation free reserves including general reserves and retained earnings.

The bonus shares will be credited to the investor’s demat account within two months from the board’s approval i.e. on or before September 1, 2024. The company’s board approved the issue of bonus shares on July 2, 2024, to celebrate CDSL’s 25th anniversary and boost shareholder value.

CDSL’s market share has seen steady growth as the company opened over 99 lakh new demat accounts during Q1FY25. The company became the first depository to register over 12.5 crore demat accounts.

Shares of the company have risen by nearly 61% since the beginning of the year. The stock has gained over 150% in the past year