Bonus Shares issue: What happens to fractional shares?

Stocks
1

I had 22 stocks of Astral Poly Technik Ltd., and the company recently issued 1:3 bonus shares, i.e. they issued 1 bonus share for every 3 shares held by the shareholder as of the record date. Since I have 22 shares, I received 7 bonus shares. My question is what happens to the 0.33 share for the additional one share I had (22 - 21 = 1 share)?

Ideally shouldn’t the company issue cash equivalent of 0.33 shares (with share value as of the date of bonus share issue)? How do best manage this as an investor?

2

Yes, you’ll receive credit for fractional entitlement into your bank account. You can check this announcement from the company for more information.

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3

Thanks Shubham! This is super helpful.

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