Earlier in February, the company had announced the bonus issue while releasing its October–December quarter results for FY26. The board approved the issue of bonus shares in the ratio of 3:1, meaning three fully paid-up equity shares of face value Rs 2 each for every one fully paid-up equity share of face value Rs 2 each held by shareholders.
Later, on March 10, the company announced that the record date has been fixed as March 20 (Friday).
What does this mean for shareholders?
If a shareholder owns one share of a company worth Rs 100, a 3:1 bonus issue will convert the holding into four shares worth around Rs 25 each. The total value of the holding remains unchanged at Rs 100.Once the stock begins trading ex-bonus, the price appears to fall sharply, but this simply reflects the adjustment following the corporate action.
Only shareholders who owned the stock on the record date are eligible to receive the bonus shares. Bonus issues consist of free shares distributed by a company from its reserves and are often seen as a sign of strong financial health and growth prospects.While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to invest in the stock.
Metropolis Healthcare share price:
Metropolis Healthcare shares have gained around 4% in the past five days, but declined around 7% in the past one month. The small-cap stock has dropped nearly 11% in the past six months, and around 5% in 2026 so far.The stock currently has a P/E ratio of around 56, and a market capitalisation of Rs 9,382 crore, as per data on NSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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