Bonus Issue: KPI Green Energy to consider second free share proposal for 2024 on November 14

KPI Green Energy Ltd. has announced that it will hold a board meet on November 14 to consider a bonus issue of shares. This will be the second time this year that the company will be considering a proposal to issue bonus shares in 2024.

Earlier this year, the company had announced the issue of one bonus share for every two shares held by shareholders.

In 2023, the company had also issued one free share for every one share held by shareholders.

Along with the bonus issue of shares, KPI Green had also split one equity share which carried a face value of ₹10 each into two shares, which now carry a face value of ₹5 each earlier this year.

The board will also consider the issue of increasing the authorised share capital of the company during the board meet on November 14.

Record date for the bonus issue, if any, has not been fixed yet.

A bonus issue, or bonus share issue, involves a company issuing additional shares to existing shareholders using its accumulated reserves or profits.

Companies issue bonus shares primarily to make their stock more accessible to retail investors, particularly when the share price has significantly increased.

Shares of KPI Green Energy are currently trading 3.5% lower at ₹763.55. The stock, adjusted for the earlier bonus and stock split is up 60% so far in 2024 and has gained 118% over the last 12 months.