Question

Write a letter to a shareholder regarding issue of bonus shares. 

Answer 1

Rainbow Steel Industries Limited

140, New MIDC,

Ausa Road, Latur-413512

 

 

Tele : 02382-222255                                                                 

 17^th May, 2012

Ref.: Rainbow/57/2012

 

Mr. Suresh Bhagat

Saraswati Niwas,

Somwar Peth,

M.G Road, Miraj

 

Sub : Issue of Bonus Shares

 

Dear Sir,

I am directed by the Board of Directors to inform you that at the extraordinary general meeting held on 9^th May, 2012 shareholders have unanimously approved the recommendation of board of directors to issue bonus shares in the ratio of 1:1 i.e., one bonus share for each fully paid equity share held by the shareholder.

Details of bonus shares issued to you are as follows :

 

Client ID/DP/TD/Folio No.	No. of equity shares held	Bonus shares allotted	Distinctive Numbers		Share certificate
			From	To
M-354/2	100	100	2001	2100	372

 

Your company has complied with statutory provisions for issue of bonus shares. These shares shall rank on par with the existing equity shares of the company.

Since you have not submitted any details about your D'mat account, company has arranged to send share certificate in respect of your bonus shares in physical form. Kindly acknowledge the receipt.

Thanking you.                                                                                                                                                    Yours faithfully,

                                                                                                                                                           For Rainbow Steel Industries Ltd.

                                                                                                                                                                                  Sd/­-

Encl : Share certificate                                                                                                                                             Secretary

 

 

NOTE: - 

Bonus shares

Bonus shares are issued free of cost to the existing equity shareholders of a company. Bonus shares are issued by capitalization of general reserves of the company. Maximum two bonus issues are permitted in a block of five years. The bonus shares are issued to existing equity shareholders in a proportion to their shareholdings.