This is the first time the company has considered issuing bonus shares to shareholders. CDSL will use free reserves, including the company’s general reserves and retained earnings, to fund the issue of bonus shares.
Companies issue bonus shares to capitalize their free reserves, increase their earnings per share (EPS) and paid-in capital, and reduce reserves. Shareholders receive these shares at no additional cost and hence, they are also known as bonus shares.
In the fourth quarter of the previous fiscal year, CDSL’s consolidated net profit increased 52% over FY23. In the March quarter, consolidated net profit doubled to Rs 129 crore. Total revenue for the quarter also increased 86% over last year to Rs 267 crore. For the full fiscal year, total revenue increased 46% year-on-year.
Shares of CDSL closed 4.6% higher at Rs 2,566.15 apiece on Friday, August 7. The stock has so far gained 38.72% in the past six months and 41.13% so far in 2024.
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