Sat Sep 21 03:51:23 UTC 2024: ## RITES Shares Plunge on Ex-Date for Bonus Issue, But Quickly Recover

**Mumbai, October 5, 2024:** Shares of RITES Ltd, a leading railway consultancy firm, experienced a sharp drop in price this morning after turning ex-date for a 1:1 bonus issue. The stock opened at Rs 362.95, plummeting 48% from Thursday’s closing price of Rs 682.45. This drastic decline, however, was attributed to the unadjusted share price, which reflects the dilution from the bonus issue.

Following the adjustment for the bonus, RITES shares rebounded strongly, climbing 8% to reach a high of Rs 362.45 on the BSE. The bonus issue increases the number of outstanding shares, leading to a proportional decrease in the share price, but also enhances liquidity for the company.

The ex-date for the bonus issue coincided with the ex-dividend date for RITES, with the company announcing a final dividend of Rs 5 per share for FY24. This dividend payment is scheduled for October 12.

Other companies that turned ex-date for bonus issues today include The Phoenix Mills Ltd (1:1 ratio), Axita Cotton (1:3 ratio), MINDTECK (INDIA) Ltd, IFL Enterprises, and Ujaas Energy Ltd.

RITES, a multidisciplinary engineering and consultancy firm, plays a significant role in the development of transportation infrastructure, particularly in the railway sector. This latest bonus issue is expected to further bolster the company’s financial strength and market presence.

Investors observing a significant drop in their trading apps should note that this could be the unadjusted price of the stock, reflecting the bonus issue. The adjusted price provides a more accurate representation of the stock’s performance after the corporate action.

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