Nazara Technologies Limited announces stock split and 1:1 bonus
One of India’s top gaming and esports companies, Nazara Technologies Limited, has announced that it will issue bonus shares in the ratio 1:1 and carry out a two-for-one stock split with the record date for both set at 26th September.
Here are the details:
- Bonus issue: ratio 1:1 — that means if you hold 1 share, you’ll get 1 bonus share.
- Stock split (sub-division): existing shares with face value ₹4 each will be split into 2 shares of face value ₹2 each.
- Record date: 26th September 2025
- Deemed date of allotment of bonus shares: 29 September 2025
What this means for you as a shareholder
Let’s take a simple example to understand the impact of bonus and split in Nazara Technologies on your holding.
Suppose before the record date you own 100 shares of Nazara. Let’s also assume the market price is ₹1,000 per share and each share has a face value of ₹4.
Here’s what will happen after both the stock split and bonus issue:
Step | What happens | Number of shares you hold | Face value per share | Market price per share (approx) | Total value (approx) |
Before | Your existing shares | 100 | ₹4 | ₹1,000 | ₹100,000 |
After stock split (₹4 → ₹2) | Each share splits into 2 ⇒ you get double number of shares, face value halves | 200 | ₹2 | ~₹500 | ~₹100,000 |
After bonus issue 1:1 | You get 1 extra share for every share you have after split (i.e. +200 more) | 400 | ₹2 | ~₹250 | ~₹100,000 |
So, following the bonus + split:
- You end up with 400 shares instead of your original 100.
- The face value drops (from ₹4 to ₹2) but you now have more shares.
- The market price per share will adjust downward (ideally) so that the total value of your holding remains about the same (ignoring market movements).
In this example, although price per share falls, your total investment value should theoretically remain ~₹100,000, barring other effects.
Why is Nazara announcing a bonus and split right now?
- Improve liquidity: More shares in hands, lower per-share price, easier for smaller investors to trade.
- Rewarding shareholders without distributing cash.
- Possibly improving the market perception: stock split + bonus often signals confidence from management.
How does bonus and split impact your holdings?
If you own Nazara shares on the record date, you don’t have to do anything — the bonus shares and stock split will automatically reflect in your account. The number of shares you hold will go up, and the face value will change, but the overall value of your investment will stay the same in the short term. From a market standpoint, the reduced price and increased share count may draw in more individual investors and boost trading activity in the upcoming weeks.
This corporate action will not affect the company’s business and growth prospects. That will depend on how Nazara Technologies Limited carries out its gaming and esports strategy, enters new markets, and capitalizes on market expansion trends. After adjustment, earnings per share (EPS) might appear lower, and there could be short-term volatility in the stock.
FAQs
What is a bonus issue?
A bonus issue is when a company gives additional shares to existing shareholders for free (in proportion to what they already own). The company is not charging you for those extra shares—they are a kind of reward or way to share capital in the company.
What is a stock split?
A stock split (or share sub-division) is when existing shares are divided into more shares, each with a lower face (par) value. It doesn’t change the total value of what you own, just the number of shares goes up and the price per share generally goes down accordingly.
Will Nazara Technologies stock split affect my dividends?
After the stock split, you’ll have more shares, so the dividend per share will be smaller. But don’t worry—your total dividend income will stay the same.
Will the stock split change Nazara’s market capitalisation?
Nope! A stock split doesn’t change the company’s overall market capitalization. You’ll just have more shares at a lower price each, but the total value stays the same.
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