(CTN News) – During the meeting on July 2, the board of directors of Central Depository Services (CDSL) (India) would deliberate and approve the proposal to issue incentive shares.
The meeting was scheduled to take place as planned. A fifteen percent increase in the value of the company’s shares occurred on Friday following the announcement of the statement.
It is not possible for a bonus issue to impact the market capitalization of the company; nonetheless, it does result in an increase in the total number of shares currently in circulation. It is possible for a corporation to choose to fulfill its obligation to its shareholders by issuing incentive shares rather than paying dividends.
This acts as an alternative to the traditional manner of distributing dividends to shareholders. According to a report in the media, this is the very first time that the company has considered the prospect of a bonus issue.
During the CDSL’s fourth quarter of fiscal year 2024,
The company made an announcement that its consolidated net profit had increased by 105% compared to the previous year, reaching a total of ₹129 crore. As of the end of the quarter, overall income had climbed by 86 percent, reaching a total of ₹267 crore.
Over the course of the full fiscal year 2024, the company experienced a year-over-year rise of 52% in its consolidated net profit, which ultimately led to a revenue of ₹420 crore.
According to the accounting firm, this expansion was reported. An increase of 46% was seen in the total income for the quarter, which amounted to ₹907 crore.
As an additional point of interest, the board of directors has suggested a final dividend of ₹19 per equity share for fiscal year 24. However, this proposal is contingent upon shareholders’ approval.
Furthermore, to acknowledge the silver anniversary celebrations that have been going on for the past quarter of a century, it was proposed that a special dividend of three rupees per equity share be distributed. In order to recognize and celebrate the achievements of the organization, this solution was implemented. In the event that shareholders consented to this, the total dividend payout would amount to ₹22 per equity share.
Assuming CDSL has confirmed their consent.
CDSL made the announcement in March 2024 that it had successfully recorded more than 11.56 crore demat accounts, making it the first depository to accomplish this milestone.
This was the first time information was made public. Over 3.26 crore new demat accounts were opened during fiscal year 2024, with a record 1.09 crore of these accounts being registered in the fourth quarter alone. This figure represents a significantly higher number than the previous quarter.
In CDSL’s existence, this was the most important quarterly demat account registration the company had ever witnessed.
As stated by Nehal Vora, managing director and chief executive officer of CDSL, the company continues to be committed to empowering market participants through the provision of digital services. These services include ASBA, e-AGM, eDIS, and the margin commitment mechanism.
This declaration has been released as CDSL is getting closer to celebrating its 25th anniversary. She expressed her belief that “these tools enhance the efficiency and security of the capital market,” in addition to the fact that “our sustained business and financial growth is a result of the trust placed in us by stakeholders on the capital markets.”
She mentioned that she is of the opinion that “these tools enhance the efficiency and security of the capital market.”
It has been more than twenty-six percent since the beginning of the year, and the company’s shares have climbed substantially since then. During the preceding year, the price of the share has climbed by more than 105 percent.
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