CONCOR shares turn ex-bonus, open 20% lower as price adjusts for bonus issue; check details

Container Corporation of India (CONCOR) shares are in focus today as the stock turned ex-bonus. The state-run rail transport company has set July 4 as the record date for its 1:4 bonus issue.

Yesterday, CONCOR shares closed ₹745.25 per share on NSE, but opened at ₹597 apiece today, down 19.8% as stock price adjusted to bonus issue. The stock rose as high as 1.5% today to make day high of ₹606.5 per share.

CONCOR had earlier declared a bonus issue where it issued one free share for every four held. So far this year, shares of the PSU company have delivered subdued performance declining over 24% YTD.

Ex-date is the date on which the company’s stock starts trading without the entitlement to a recently declared bonus issue or other corporate actions like dividends. To qualify for corporate action, investors must buy the stock before the ex- date to be recognised as shareholders on the record date.

CONCOR has consistently declared bonus issues for its shareholders. It declared first bonus issue of 1:1 in April 2008, followed by 1:2 share bonus in September 2013. CONCOR next bonus issue came four years later in April 2017 in 1:4 ratio, followed by another bonus of 1:4 in Feburary 2019. In total, the company has declared five bonus issues, including the latest one.