L&T - odd number of shares (fractional shares?)

I have an “odd” number of L&T shares and L&T has announced 2:1 bonus shares scheme.

  • What happens to the extra share that I am left with?

  • How extra shares, that are left, are dealt with in general (and in Zerodha)?
    and in what time frame they are settled?

Usually, the company appoints a trustee via which the company buys the fractional shares and settles in cash with you.

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Thanks for the reply!

So will someone contact me via mail (like they do for e-voting) or will the cash just “appear” in my Z account (when the “trustee” automatically? settles it)?

It will be great to know (if you/anyone has experienced this situation) about what is the procedure and approximate time frame involved?

And do I have to do anything to settle the fractional share?

If my holding is less than a year, would there be implication of short term capital gains tax?

If yes, then on what amount?

Can you please show calculation for 1 share of L&T bought at Rs 1686?

Hope that helps… except for the tax part

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Thanks Sir. I am more concerned about the tax implications.

Also, can you please tell what will be the ‘decided’ price at which these shares will be sold in the market?

Suggest you call their R&T agents a call - http://investors.larsentoubro.com/Resources.aspx

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Thanks! Have mailed them my query. Hope to receive a satisfactory answer.

Reply from L&T team.

@Karthik: Will the buy price be udpated in Zerodha holdings or am I suppose to manually edit it? If it is to be done manually, please help how can it be done.

FYI, The amount related to the fractional share is in my bank account!

And yes, I am also interested to know on

  • how to fix the artificial loss in P&L due to the fractional share.