Anyways…It is in the hands of RBI and I am sure that industry players conveyed their views and sanity prevails…I am ok with any of the accounting related jugglery rules ( provision etc)as long as loan is recovered…In a way , I prefer lumpiness which gives opportunities to add the stock as most of the market players prefer certainty…RBI shall keep big stick first sothat industry players ask for small stick…If RBI itself keeps small stick , industry players shall ask for No Stick…These are things which are not under any of our control and the past clearly has reasonable amount of bad loans given to pvt players by these power psu nbfcs…I only hope they give fewer bad loans…

Hi all, do not want to clutter the Raymond thread hence asking the question here.
I had purchsed Raymond Limited shares on 1st April 2024. And my understanding is that the demerger happened after the above date, so ideally i should receive shares of Raymond Lifestyle as well, right? Reason i am asking this is because i dont see Raymond Lifestyle shares in my demat account.
Thanks in advance.

Issuing bonus shares definitely increases the liquidity of the stocks but it doesn’t protect stock from manipulation if it’s a small caps counter. I have seen small caps stocks hitting upper circuit after announcement of bonus issues and there is no other possible explanation of that other than the fact that someone wants to create excitement around the stock.

As far as I’m concerned issuing bonus shares is unnecessary use of company’s reserves in the service of feel good optics. A stock will do well whether it’s listed at 50 INR or 50000 INR, or if its free float is 10% of 50%, as long as the company is showing earning growth.

So you are right in stating that motives for bonus issues can be hard to interpret. But when a bonus issue comes right after 6-8x rally in a stock in a very short time, I think it’s time to be careful because this could be the last squeeze management is applying to get whatever juice is left out in the stock.