21% Return Since 2025; This Healthcare Stock Announces 1:1 Bonus Issue: Do You Own?

Healthcare company Abate AS Industries Limited announced a 1:1 bonus issue for its shareholders. The company's board of directors approved the bonus share issue in the proportion of Rs 10 each for every one existing fully paid-up equity share of Rs 10.

The Kerala-based healthcare firm on Tuesday announced a bonus share issue for its eligible shareholders. The company has yet to identify the record date for the bonus issue. The company scrip closed at Rs 21.21 per share on BSE on Wednesday, June 18.

Abate AS Bonus Issue

The company, in its BSE filing, noted that the Board of Directors had approved an, "Issue of Bonus Shares in the proportion of 1:1 i.e. 1 (One) fully paid-up bonus equity share of Rs. 10/- (Rupees Ten only) each for every 1 (One) existing fully paid-up equity share of Rs. 10/- (Rupees Ten only) each held by the Members of the Company as on the Record Date, subject to approval of Members of the Company in ensuing General Meeting."

In addition to the announcement of a bonus issue, Abate AS had also declared an increase in the authorised share capital of the company from Rs 95 crore to Rs 185 crore. The development was made by altering the capital clause of the Memorandum of Association of the company, if approved in the Annual General Meeting, scheduled for 14 July.

About Abate AS Bonus Issue

As part of the bonus issue plan, the company is likely to "issue 7,88,03,228 (seven crore eighty eight lakhs three thousand two hundred and twenty eight) fully paid-up equity shares of Rs. 10 /- (Rupees Ten Only) each as part."

The company has further notified that the bonus equity shares have been issued out of credit of the Reserve and surplus account, Security premium account available as of the end of the financial year 2024-25. The company has planned to capitalise around Rs 78,80,32,280 for implementing the bonus issue. The bonus issue was announced considering the company's general reserve balance of Rs 5,37,82,351 and securities premium balance of Rs 90,61,05,931 as on 31 March 2025.

Abate AS Share Price Trend

The company scrip was valued at Rs 21.21 per share on BSE on Wednesday, June 18. Abate AS's stock trading was restricted as per Graded Surveillance Measure (GSM), according to BSE as on June 18.
The stock touched tis 52-week high mark of Rs 30.13 per share on BSE on 8 July 2024. The price of the stock dipped to its 52-week low mark of Rs 14.75 per share on BSE on 2 December, 2024.

What is a Bonus Issue?

Bonus issue is another corporate action announced by company to distribute its additional shares to its existing shareholders for free. It is another way for the company to reward a portion of its profit to its shareholders. With a bonus issue, shareholders receive an extra proportion of their existing holdings.

How To Become Eligible For Bonus Issue?

To become eligible for bonus issue it is important for investors to purchase or own the company scrip on or before the bonus issue record date.