Description

Karur Vysya Bank announces bonus issue of 1 equity share for every 5 existing shares with record date August 26, 2025.

Summary

Karur Vysya Bank Ltd has announced a bonus issue of equity shares with a ratio of 1:5, meaning shareholders will receive 1 new equity share of Rs. 2/- each for every 5 existing equity shares held. The record date is set for August 26, 2025, and trading will be on ex-bonus basis from the same date.

Key Points

  • Bonus ratio: 1 new share for every 5 existing shares
  • Face value of new shares: Rs. 2/- each
  • Record date: August 26, 2025
  • Ex-bonus trading starts: August 26, 2025
  • Settlement number: DR-702/2025-2026
  • Company scrip code: 590003

Regulatory Changes

No regulatory changes announced in this circular.

Compliance Requirements

  • Trading members must note the ex-bonus trading arrangement
  • Shareholders must hold shares as of record date to be eligible for bonus shares
  • Dematerialised securities under rolling settlement segment are covered

Important Dates

  • August 26, 2025: Record date for bonus issue eligibility
  • August 26, 2025: Ex-bonus trading commences
  • Settlement DR-702/2025-2026: Applicable settlement cycle

Impact Assessment

The bonus issue will increase the number of outstanding shares by 20% (1 for every 5 existing), potentially improving liquidity and making shares more affordable for retail investors. Existing shareholders will maintain their proportionate ownership while the stock price is expected to adjust proportionally on the ex-bonus date.

Impact Justification

Standard bonus issue affecting existing shareholders with immediate trading implications