Kore Digital Ltd (KDL), listed on NSE’s SME platform, has announced a 2:1 bonus share issue, subject to shareholder approval. This means eligible shareholders will receive two additional equity shares of ₹10 each for every fully paid-up equity share held as of the record date, which will be announced later.
The company has planned to issue approximately 81,41,800 bonus equity shares, including shares reserved for 62,900 outstanding convertible warrants. These bonus shares will be issued from Kore Digital’s securities premium account, which had a balance of ₹69.51 crore as of March 31, 2024.
Upon issuance, Kore Digital’s paid-up equity share capital is expected to increase from ₹4.01 crore (40,08,000 equity shares) to around ₹8.14 crore (81,41,800 equity shares), subject to the paid-up share capital status on the record date.
Alongside the bonus issue, Kore Digital’s board has approved an increase in the company’s authorised share capital. The limit will be raised from ₹4.5 crore (45,00,000 equity shares) to ₹12.5 crore (1,25,00,000 equity shares). This change necessitates a modification to the company’s memorandum of association.
The company is yet to finalize the record date, which determines the eligibility of shareholders for the bonus shares. In its exchange filing dated December 3, 2024, Kore Digital assured stakeholders that the record date would be communicated shortly.
The bonus shares are expected to be credited to eligible shareholders’ demat accounts by February 1, 2025, which is within two months of the board’s approval.
Kore Digital’s share price remains illiquid, with no trading activity recorded around 10:00 AM on the day of the announcement. The stock’s last traded price was ₹1,693.85.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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