Thyrocare Technologies shares give up gains as they trade adjusted for 2:1 bonus

Thyrocare Technologies Ltd. shares began trading adjusted for the 2:1 bonus issue on Friday, November 28. The stock has given up early gains and is now back near the flat line.

The company issued two bonus shares of face value ₹10 for every one share of face value of ₹10 held.

Last week, it had announced November 28 as the record date for the bonus issue. Only those investors who bought the stock before the record date were eligible for the bonus shares. If an investor purchases the shares on the ex-date or after that, they are not eligible to get the bonus shares.

This is the first time Thyrocare has approved the issuance of bonus shares for its shareholders. Since 2016, the company has paid dividends worth ₹143.5 per share to its shareholders.

Companies issue bonus shares to capitalise on their free reservice, increase their earnings per share (EPS) and paid-up capital and to reduce the reserves. Shareholders are issued the shares at no additional cost. Hence, they are also known as free shares.

Along with the bonus of shares, Thyrocare had also announced an interim dividend of ₹7 per share for its shareholders.

At the end of the September quarter, the company's promoters held 71.06% stake in it.

Shares of Thyrocare Technologies gained nearly 5.5% to hit an intraday high of ₹518.6 apiece on Friday. It later pared its gains and was up 0.3% at ₹493.2 per share.

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