Shares of JTL Industries on Thursday hit a fresh 52-week high of Rs 227.85 on BSE as they turned ex-bonus. The stock opened at Rs 216, up over 1.50 per cent from the previous close of Rs 211.05 (on bonus adjusted basis). The stock went on to hit a fresh 52-week high of Rs 227.85 during today's trade, according to the exchange data.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

JTL Industries is engaged in the iron and steel industry. Its shares turned ex-bonus during Thursday's trade.

The company announced the bonus issuance to shareholders in the 1:1 ratio in August. The same was approved by shareholders at its annual general meeting (AGM) held on August 30. It means that JTL Industries will issue one additional share for each equity share held by its investors.

According to the BSE website, the board had set September 7 as the record date for the purpose of determining the eligibility of shareholders for the issuance of bonus shares.

A bonus share is a type of corporate action wherein a company issues additional shares to its investors. The market price of the stock is adjusted in the bonus issuance ratio.

The rationale behind the bonus is to enhance the liquidity in the stock and make the stock price affordable to small investors. A bonus share is issued without altering the face value of equity shares and it also has no impact on the company's market cap.

However, the total number of outstanding shares in the market goes up, thus helping the company to increase its shareholder base.

JTL Industries shares have delivered multibagger returns to its investors in the last year. It has yielded a return of 123 per cent as against a 52 per cent rise in the BSE Industrials index. In 3 years, it has delivered a solid return of over 1600 per cent.