HDIL Bonus issue!!??

Question

Sir

HDIL Bonus 2:7 on 21 August.

What does ths mean? If i buy it in cash tomorow will i get the bonus shares? secondly what wil be the impact on share pice and face value?

Answer 1

"To Issue Bonus Shares in the proportion of 2 (two) new equity shares for every 7 (seven) equity shares held."

Whenever a company increases shares outstanding, it makes existing shares worth less.

I would not buy.