Track Corporate Actions Like Bonus Issue, Stock Splits & Demergers On INDstocks

Corporate Actions like bonus issues, stock splits, and demergers are important company decisions that directly impact your shareholding. On paper, they are supposed to be good news. Bonus issues mean extra shares, stock splits mean each share is more accessible, and demergers show hidden value.

However, more often than not, these announcements end up confusing shareholders and leave them feeling uncertain. This happens because when a corporate action is announced, the share price adjusts, while new shares for demergers or extra shares for bonus or split, take time to reflect in your portfolio.

We wanted to change this by offering our Indian stock investors complete tracking of these corporate actions and their impact on their holdings. Let’s look at the common challenges investors face during each corporate action and how INDstocks helps you stay clear through every step.

What Happens After Bonus Issues, Stock Splits & Demergers?

Corporate actions are corporate decisions that impact your shareholding. While they're designed to benefit investors, the way they unfold often creates confusion. Here's what actually happens during each type of corporate action:

Bonus Issue

A bonus issue is when a company gives additional shares to their shareholders for free. In this case, your total investment value remains the same, but the shares increase.

So, once the bonus is announced, the stock price adjusts to the new share count. Your portfolio shows the reduced price, but the bonus shares usually take a few days or weeks to be credited to your demat account.

Stock Splits

As the name suggests, a stock split means the stock you own is split. For example, in a 1:2 stock split, one share becomes two. 

This means that if the original share price was 10, it now becomes ₹5 after the split. 

Similar to a bonus, once stock splits are announced share price splits and adjusts while extra shares take time to reflect. 

Demergers

A demerger is when a company splits into two separate entities. For example, recently HUL announced a demerger of its ice-cream business. 

As a shareholder of the parent company, you also receive shares in the newly formed company as well. However, the new company’s shares are usually credited after a few weeks, but the parent company adjusts its price ahead of time.

The Challenge

In the above three cases, the challenge is constant. The price adjusts first while the new shares are credited later. During this gap, your holdings value may look different, leading to confusion.

The Solution

Indian stock investors on INDmoney can now track corporate actions across their full lifecycle. This feature gives them complete clarity on what impact the action has on their holdings and when.

How To Track Corporate Actions On Indian Stocks?

With INDstocks' Corporate Actions tracking, you get complete visibility into every stage of a corporate action. Here's how it works:

Step 1: Get Notified 

As soon as a corporate action is announced on any stock you own, you will be informed about it with all the key details.

Step 2: View Complete Timeline

Open the corporate action to understand what it means and where it stands in its lifecycle. This is clearly shown by displaying a timeline with all important dates, like: 

• Announcement Date: This is the day the company announces the corporate action.
• Ex-Date: This is the cut-off date for eligibility. If a shareholder buys the stock after the ex-date, they are not eligible for this action.
• Record Date: This is the date on which the company decides which shareholders are eligible.
• Credit Date: This is the date when actual shares arrive in your demat account.

As the corporate action progresses, this timeline updates to show the current stage.

Step 3: Understand the Impact

Next, you can also clearly see how the corporate action affects your share count, stock price and overall portfolio value.

Step 4: Track Demergers with Placeholders

For complex cases like demergers, a non-tradeable placeholder is created for the new company. This helps investors with clarity on how their shares across parent and child companies will be split.

As the corporate action progresses through each stage, you'll see real-time updates. When shares are finally credited to your demat account, the placeholder is automatically replaced with the actual holding.

What Are The Benefits Of Tracking Corporate Actions?

1. Eliminates confusion 

Corporate actions are recurring events, but when your investment app does not explain what is happening, the process can feel confusing.

2. Accurate portfolio tracking

Your investment value stays accurate throughout corporate actions tracking. This is especially crucial for demergers, where weeks of inaccurate portfolio values can distort your understanding of how your investments are actually performing.

4. Saves time 

No more googling 'why did my share value drop' or ‘why demerger shares are not credited’. No more cross-checking multiple sources to figure out when your bonus shares will arrive. Everything you need is in one place, clearly explained.

Track & Understand The Impact Of Corporate Actions Today!

Corporate actions are a normal part of long-term investing, but for too long, this has created more confusion than clarity. That’s why we built Corporate Actions tracking on INDstocks, to give you complete visibility into what’s happening, why it’s happening, and what it means for your holdings. Whether it’s a bonus, split, or demerger, you can now follow every step with confidence.

Dislcaimer:

Securities quoted are an example and not a recommendation. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This is nowhere to be considered as an advice, recommendation or solicitation of offer to buy or sell or subscribe for securities. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), AMFI Registration No: ARN-254564, SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.