Companies that declare bonus share as dividends also have the obligation to work towards prompt listing of the shares as well. After declaration of dividend for a particular year, companies set the book closure date and AGM date. After the book closure date, the price of shares of the companies are adjusted relative to their respective bonuses. After the dividend is endorsed by the AGM, the companies move towards distribution of cash dividend and listing of bonus shares.
However, some companies are lagging behind in this aspect. Most of companies which declared bonus dividend for FY 75/76 have not listed their shares for trade in the secondary market. Due to this, the shareholders of the company are at loss and the goodwill of the company is diminished.
To have a clear picture, sector wise breakdown of companies to declare and list bonus shares have been prepared. The duration taken for listing has been calculated by ascertaining the number of days between the AGM dates and listing date. Companies whose listing date hasn’t been mentioned have not listed their bonus shares yet and the duration depicts the number of days that has elapsed since the AGM. For this purpose, yesterday date has been considered (February 5, 2020).
For companies that have listed their bonus shares, the range of duration has been between 50 days (Global IME Bank) and 109 days (Sanima Bank Limited). On the other hand, 104 days have elapsed since the AGM of Siddhartha Bank Limited (SBL) and still bonus shares have not been listed. However, many companies remain to conduct AGM or set the book closure date.