Shareholder Circular Service’s Event coverage

M= Mandatory and V=Voluntary

Capitalisation/Bonus Issue (M): Issue of free shares to the shareholders by capitalizing the reserves of the company. Security being issued can be an instrument other than Equity Share.

Consolidation/Reverse stock split (M): Increase in the Face/Nominal Value of the security. Company’s Equity Capital remains the same but the number of shares in issue reduces.

Conversion (V/M): Exchange of one instrument for another instrument usually with the same company.

Capital Reduction (M): Writing off of the existing Equity Capital of a company by either reducing the Par Value and/or by cancelling a certain number of shares or capital. If a cash payment is involved, then it is described as Return of Capital.

Capital Reorganisation (M): A significant change to a company's capital structure

De-Merger/ Spin Off (M): Separation of a portion of company A’s operations/assets into Company B. Shareholders of Company A receive free shares of Company B.

Distribution/ Distribution in Specie (M): Issue of free shares of Company B to the shareholders of company A. There is no transfer of operations/assets of company A to company B. The shareholder continues to have shares in both companies, A and B. Hence, the event is distinct from De-merger or Bonus.

Entitlement (V): Non Renounceable offer to existing shareholders to subscribe to further securities in proportion to their holding, at a fixed price.

Liquidation (M): A process by which a bankrupt company is sold off as per the Liquidators’ guidelines. The shareholders of the company may receive payment from the liquidation proceeds.

Merger (M): Coming together of two or more companies to form a new company. Shareholders of all the old companies have to exchange their holding for shares of the new company. The original companies cease to exist.

Scheme of Reconstruction (V): Arrangement between Company A and shareholders in which Company B issues shares or securities to those shareholders in respect of and in proportion to the original holdings.

Stocks Splits (M): Reduction of the price of the current shares by issuing more shares.

Redemption (M): Payment made by the issuer on the designated maturity date of a debt instrument.

Rights Issue (V): An offer to existing shareholders to subscribe to further securities in proportion to their holding, at a fixed price, made by means of the issue of a renounceable letter which may be traded for a period before payment for securities is due. The allotment of shares will usually be in the same company.

Scheme of Arrangement (M/V): Distribution of stock, cash or a combination of both or replacement of some or all of one (or more) lines of security.

Takeover/Amalgamation (V/M): Company A takes over the managerial control of Company B. Both companies may continue to exist. A Take-over may result in a Compulsory Acquisition if the country’s trigger limit of minimum public shareholding is breached.