Bonus Share Alert: 4 lakh retail shareholders of this HDFC Group stock to be rewarded on October 15

Shares of HDFC Asset Management Company Ltd. (HDFC AMC) are trading with gains of close to 1% on Monday, October 13, after the company announced the proposal to reward shareholders.

HDFC AMC, in an exchange filing on Friday, October 10, said that it will hold a board meet on Wednesday, October 15, to consider a proposal to issue bonus shares for its shareholders.

Wednesday will also be the day when the company will be considering its quarterly results for the July to September period.

This will be the first instance since the stock listed in 2018, that it will be considering a proposal to issue bonus shares for its shareholders.

While HDFC AMC has not issued any bonus shares to its shareholders, it has regularly rewarded shareholders through dividends. Since 2019, the company has paid dividends worth ₹336 per share to its shareholders, including ₹90 per share that it paid in June this year.

Promoters of HDFC AMC had a 52.4% stake in the company at the end of the June quarter. Over 4 lakh small retail shareholders, or those with authorized share capital of up to ₹2 lakh, have a 6.51% stake in the company at the end of the June quarter.

Shares of HDFC AMC are trading 1.7% higher at ₹5,612.5. The stock is now closing towards its 52-week high of ₹5,927. The stock is now up 5x from its IPO price of ₹1,100 per share.