Central Depository Services Limited (CDSL) had declared a bonus issue of shares in a 1:1 ratio last month.

What Happened: The bonus shares will be issued to the shareholders of the company in the ratio of 1:1, for every share held in the company, the investor will receive another. The record for the same is Saturday, August 24. Shareholders will be eligible for the bonus issue if they own the shares on the record date.

The issuance of bonus shares is subject to the approval of shareholders in the ensuing 26th Annual General Meeting of the company to be held on August 17, 2024.

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This marks the first time the company is issuing bonus shares to its shareholders. After the issue, the CDSL share price will be adjusted downward to approximately half of its pre-bonus issue level, assuming all other factors remain constant.

Earlier this month, the market infrastructure company received mixed reactions from brokerages after the company reported strong Q1 results on August 6, 2024. The analyst expressed concerns about the rise in the company’s technology costs.

CDSL reported an 82% year-on-year jump in net profit to ₹134.20 crore from the previous year. Its revenue in the quarter was up 72% to ₹257.38 crore. The total number of demat accounts stood at 12.5 crore for the depository service as of June 30, 2024.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.