New Delhi. Yesterday Thursday (28 November) a stock closed at Rs 1,562.85, but on Friday it opened at Rs 792.05. Meaning the share price fell by half. But this was not bad news for investors, because the company has given a bonus share of 1:1 on its shares. In such a situation, now those who had 10 shares will get 10 more shares. In total they will have 20 shares and their total purchase value will remain almost the same as before. This has happened in the share of Raghav Productivity Enhancer Limited (RPEL) included in Rekha Jhunjhunwala's portfolio.

RPEL's stock has risen from Rs 45 to Rs 1,600 in the last three years, which represents a growth of about 3,500 percent. However, on Friday, its price saw a slight decline and it also touched a price of Rs 741 at around 10:34 am.

When will the bonus shares come into the account?
The company has fixed 30 November 2024 (Saturday) as the record date for issuing bonus shares. However, its effect was visible on the trading platform only on Friday. The bonus shares will be credited to the demat account of the investors by 2 December 2024 (Monday) and will be available for trading from 3 December 2024 (Tuesday).

Rekha Jhunjhunwala's stake
Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, holds 11,02,852 equity shares (4.80%) of the company. Her stake was worth Rs 172.30 crore as of Thursday's trading session. After the bonus issue, the number of shares she holds will double, but the value (after some fluctuations) will remain the same.

Raghav Productivity Enhancer Limited primarily manufactures quartz-based ramming mass, quartz powder , and tundish boards. These products are sold under the brand name 'Raghav' and are primarily used as furnace refractory lining material in the steel industry.

Why do companies offer bonus shares?
Bonus shares are additional shares that companies offer to their existing shareholders at no cost. Companies usually do this to increase investor confidence, improve liquidity, and increase retail participation. This increases the number of shareholders, but does not increase the total wealth, as the share price decreases in the same proportion. It is a positive sign that the company is performing well.