Crompton Greaves bonus issue approved
Crompton Greaves jumped 6.72% as net profit rose 60% to Rs 135.43 crore on a 14% increase in total income to Rs 1240.47 crore in Q3 December 2009 over Q3 December 2008. The result was announced during trading hours today, 28 January 2010.
Meanwhile, the company’s board recommended issuing three bonus shares for every four held (4:3). This is Crompton Greaves’ third bonus issue. Earlier, the company had issued 1:1 bonus in January 1990 and a 2:5 bonus in December 2006.
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Comments
Hi Ramiah, very good point. Thanks for pointing out the typo. I admire our readers who read the news so carefully.
Hi,
I had 25 shares of Crompton. Now, with this 3:4 bonus issue, how many shares will I get? If I am calculating correctly, I should be receiving 18 news shares for the 24 shares I have. But, what about the 1 share? How is it calculated? Please let me know.
Thanks,
Chandan
Hi Chandan, correct you will receive 18 bonus shares. The remaining 1 share does not hold value to get any bonus share.
Hello Admin, Thanks for your prompt response. Someone told me that I will be compensated for the fractional share, meaning I will be receiving some partial monetary credit to my account. Is this true?
Please let me know. thanks!
Chandan, no, usually it does happen that way - at least it did not happen with me in past. If you receive monitory credits, please let me know.
Sir,
Crompton announced bonus of 3 bonus shares for every 4 shares held.
Ratio should be 3:4
But you have put it as 4:1