Bonus Issue: Smallcap company distributes bonus, announced after market close:

News Topical, Digital Desk : Financial services provider SMC Global Securities announced a bonus on Wednesday. The company made this announcement after market hours. In a statement to the stock exchanges, the company said its board met today and approved a proposal to award one bonus share for every share with a face value of ₹2. The company also stated that the board will announce the record date for the bonus in the near future. SMC Global Securities, a component of the BSE Smallcap Index, closed slightly higher at ₹141.25 on the BSE on Wednesday.

Keep an eye on these two companies on Thursday.

Thursday is the last chance to benefit from bonuses from two more companies. The record date for bonuses for these companies is September 25th. Chandra Prabhu International Ltd. is offering one bonus share for every two shares held. Nazara Technologies Ltd. is offering its investors one bonus share for every one.

What is the effect of bonus shares? Companies announce bonus shares and drive down the stock price. Increased liquidity allows a larger investor base to trade in the stock, impacting the price. Prices fall in proportion to the bonuses announced by companies.

What should investors do? Investors should keep in mind that investment decisions are not based solely on corporate actions. Investment decisions are based on the stock's valuation and future projections regarding the company's performance. Therefore, seek advice on the stock before making an investment decision.