Nazara Technologies Sets September 26 As Record Date For 1:1 Bonus And 1:2 Stock Split

Mumbai, September 25: Nazara Technologies Limited has announced that it has fixed tomorrow, September 26, as the record date for its 1:1 bonus and 1:2 stock split. Since the shares of the company will trade ex-bonus and ex-split from tomorrow, it means that investors who want to utilise the benefit of the dual corporate action must hold or buy the company’s shares by the end of today’s market session.

As of 10:30 AM, Nazara Technologies Limited’s share price was down by 0.14%, or 1.60 points, and was trading at ₹1,117.40. Nazara Technologies Limited is an Indian gaming and sports media platform. The company was established in 1999, and its headquarters are in Mumbai, Maharashtra, India. Its NSE symbol is NAZARA, and its BSE code is 543280.

How Will Nazara Carry Out The Dual Actions?

Nazara Technologies highlighted that it will carry out both actions simultaneously. It will first carry out a stock split, reducing the face value of its shares from ₹4 to ₹2. This will effectively double the number of shares in circulation. After this, it will carry out a 1:1 bonus issue. This will provide shareholders with one additional share for every share they held on the record date.

For example, if you held 10 shares of Nazara Technologies on the record date, the 1:2 stock split would increase your holding to 20 shares, while the share price would drop by 50%, keeping your total investment value unchanged. After this, a 1:1 bonus issue would add 20 more shares, bringing your total to 40 shares, with the share price adjusting again by 50%. In both cases, although the number of shares increases, the adjustments in share price ensure that your overall invested value remains the same relative to the original 10 shares.

Enhanced Liquidity And Higher Investor Demand

The dual action by Nazara Technologies will help the company enhance liquidity for its shares and attract more investors, as the share price will become affordable for new investors. However, the dual actions will not change the investment value for current shareholders, along with the company’s market cap.

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