Corporate Actions and Updates

Stock Split and Consolidation of Shares (Reverse Split)

A stock split increases the number of shares outstanding while proportionally decreasing the face value per share, making shares more affordable and accessible for investors. Conversely, a reverse stock split reduces the number of shares outstanding while increasing the face value per share, generally undertaken to boost the share price, improve investor perception, and reduce price volatility. 

Neither action affects the company's overall market capitalization.

Note: In your reports and holdings section, Firstock will adjust your buying price according to the respective stock split or reverse split ratio.

Buyback of Shares

What is it? A buyback occurs when a company repurchases its own shares from the market, thereby decreasing the total number of outstanding shares.

Purpose: It is primarily aimed at enhancing shareholder value by increasing earnings per share (EPS) and reducing dilution.

How to Apply:

1. POA Clients: Email Firstock support to initiate and process your application.

2. Non-POA Clients: Shares will be earmarked using the CDSL EASIEST platform. The buyback proceeds will be credited directly to your registered bank account.

Dividends

What is it? Dividends are portions of a company's profits distributed to shareholders, typically paid out as cash or additional shares.

Common Issues:

1. Dividend Not Received? Ensure your bank details are accurately updated with your depository participant (DP).

2. Dividend Less than Expected? Tax Deducted at Source (TDS) may have been applied. Ensure your PAN details are updated to minimize withholding taxes.

Bonus Issue

What is it? A bonus issue provides additional shares to existing shareholders at no extra cost, proportionate to their current holdings.

Delay in Credit: Bonus shares are typically credited within 15 working days following the record date.

Note: In your reports and holdings section, Firstock will adjust your buying price according to the stock's bonus ratio. Positions in F&O will be adjusted based on the adjustment file received from the exchange.

Rights Issue

What is it? A rights issue offers existing shareholders the opportunity to purchase additional shares, usually at a discounted price.

How to Apply:

1. Apply using ASBA (Application Supported by Blocked Amount) via your bank.

2. Alternatively, apply through the Registrar and Transfer Agent’s (RTA) portal, as per specific instructions of the issue.

Right Entitlements (REs): These are temporary, tradable securities representing the shareholder's eligibility to purchase additional shares.

Note: If you do not apply within the stipulated application period, REs expire, and you lose the opportunity to purchase discounted shares.

Demerger

What is it? A demerger occurs when a company separates one or more of its business units into a distinct company.

Purpose: Typically conducted to streamline operations, enhance strategic focus, and unlock value for shareholders.

Note: In your reports and holdings section, Firstock will adjust your buying price according to the stock's demerger ratio. Usually, F&O positions will expire on the record date.

Firstock will make necessary adjustments to your buying price and P&L calculations for actions such as stock splits, reverse splits, bonus issues, and demergers, according to the corporate action ratio and based on the adjustment files received from the exchanges.