MK Exim (India) board approves 2:1 bonus issue

MK Exim (India) Ltd's board today approved and recommended bonus issue in the ratio of 2:1, which means for every one share that a person owns in the company, he or she will get two additional shares.

On Tuesday, MK Exim (India) shares rose 4.98% to close at ₹208.50 on BSE.

The record date for the bonus issue is yet to be notified. A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.

All shareholders who own shares of the firm before the ex-date, which is determined by the firm, are eligible for bonus shares.

The bonus issue is as on record data, subject to the approval of members and other approvals, consent and conditions as necessary, MK Exim said in a statement.

The board has also approved increasing the share capital of the company from ₹10 crore to ₹30 crore, the company informed the stock exchanges.

MK Exim (India) Ltd is a growth oriented business enterprise with operations and expansion projects in multiple domains. They have manufacturing facilities for fabric, readymade garments and jewellery; and are an approved supplier for relief programs.