IRB Infra shares trade ex-bonus: Price targets & how bonus issues work

IRB Infrastructure bonus issue: Shares of IRB Infrastructure Developers zoomed 11% on Monday after the stock traded ex-bonus. IRB Infra stock opened with the 1:1 bonus issue adjustment at Rs 20.56 and rose to a high of Rs 22.70, up 11.15 per cent. The bonus issue was announced last month. 

Kunal Kamble, Sr. Technical Research Analyst at Bonanza said, "IRB Infrastructure is showing signs of reversal after consolidating within a falling channel. The stock has rebounded from strong support near Rs 19 and is moving toward the upper trendline, indicating accumulation. Price is attempting to sustain above short-term moving averages, while RSI is improving, signaling strengthening momentum. A breakout above resistance could trigger a fresh uptrend supported by rising volumes. Fresh long positions can be initiated at Rs 22 with a stop loss at Rs 19. Upside targets are Rs 28 and Rs 30, offering a favourable risk-reward setup for long-term positional investors."

Hitesh Tailor, Technical Research Analyst at Choice Broking said, "IRB is currently exhibiting a cautiously constructive setup on the weekly chart, as the stock trades around Rs 22.25 near the confluence of its 50-week and 100-week moving averages. This zone is acting as a key equilibrium area, with price consolidating in a broader Rs 19– Rs 23 range, indicating ongoing accumulation after a prolonged corrective phase. The weekly RSI at 55.58, sustaining above the 50 mark, reflects improving momentum and supports a positive undertone. From a technical perspective, a decisive breakout above the 23 zone could act as a trigger for fresh upside momentum, potentially leading to a trend reversal on the higher timeframe. On the downside, the Rs 19–21 zone remains a crucial support band, any sustained breach below this may weaken the current structure. Overall, the outlook remains cautiously optimistic, with confirmation required through a range breakout supported by rising volumes to validate further upside continuation."

Ex-date is one day ahead of the record date. Shareholders are required to purchase the shares before the ex-date to be eligible for this corporate action. 

A record date is when the firm checks the eligible shareholders for the corporate action. If one buys shares on or after the ex-date, the investor will not be eligible for the proposed corporate action.

In case of IRB Infra, if these shares were in demat account on Friday, this would have made investors eligible to avail the bonus shares. If one buys shares today or on Wednesday, they would be ineligible for any bonus shares.

For example, a shareholder owns 100 shares of IRB Infra as of the record date. In case of 1:1 bonus issue, this means that the shareholder would receive an 100 more shares in lieu of the 100 already owned.

This would add 100 more shares to the investor's portfolio and take his total number of shares to 200 shares. The stock price will also adjust according to the ratio of the bonus issue announced.

IRB Infrastructure Developers Limited operates in the road infrastructure space, building and managing highway assets across India.