View Bonus declared by companies.

COMPANY	Bonus Ratio	DATE
		Announcement	Record	Ex-Bonus
RITES	1:1	31-07-2024	20-09-2024	20-09-2024
Saksoft	1:4	07-08-2024	19-09-2024	19-09-2024
Monarch Net	1:1	28-07-2024	13-09-2024	13-09-2024
Acceleratebs	3:5	26-07-2024	12-09-2024	12-09-2024
Indo Cotspin	7:10	07-08-2024	10-09-2024	10-09-2024
Franklin Ind	1:1	17-07-2024	09-09-2024	09-09-2024
VST	10:1	25-07-2024	06-09-2024	06-09-2024
Garment Mantra	1:1	08-07-2024	03-09-2024	03-09-2024
CDSL	1:1	02-07-2024	24-08-2024	23-08-2024
Sprayking	1:1	01-07-2024	21-08-2024	21-08-2024
PVV Infra	1:1	08-07-2024	20-08-2024	20-08-2024
Walpar	1:1	05-07-2024	14-08-2024	14-08-2024
EIH Assoc Hotel	1:1	14-06-2024	13-08-2024	13-08-2024
Milkfood	1:1	25-06-2024	13-08-2024	13-08-2024
GRP	3:1	29-06-2024	12-08-2024	12-08-2024
DJ Mediaprint	2:1	19-06-2024	09-08-2024	09-08-2024
SEL	4:1	01-07-2024	10-08-2024	09-08-2024
Caspian	2:1	03-07-2024	09-08-2024	09-08-2024
Aartech Solonic	1:2	20-06-2024	09-08-2024	09-08-2024
Maruti Infra	1:2	22-06-2024	09-08-2024	09-08-2024
Guj Themis	1:2	14-05-2024	09-08-2024	09-08-2024
Rajoo Engineers	1:1	28-06-2024	08-08-2024	08-08-2024
Goel Food	4:1	30-05-2024	31-07-2024	31-07-2024
Siddhika Coat	1:1	17-05-2024	19-07-2024	19-07-2024
MM Forgings	1:1	29-05-2024	16-07-2024	16-07-2024
Alphalogic Tech	14:48	22-05-2024	13-07-2024	12-07-2024
Filtra Consult	1:3	27-05-2024	13-07-2024	12-07-2024
Alliance Integ	2:1	01-06-2024	11-07-2024	11-07-2024
Clara	4:1	25-05-2024	08-07-2024	08-07-2024
Remedium Lifeca	3:1	27-05-2024	06-07-2024	05-07-2024
Kaycee Ind	4:1	28-05-2024	06-07-2024	05-07-2024
Vertoz	1:1	31-05-2024	05-07-2024	05-07-2024
GPT Infra	1:1	17-05-2024	03-07-2024	03-07-2024
Oil India	1:2	20-05-2024	02-07-2024	02-07-2024
Aurionpro Solut	1:1	14-05-2024	27-06-2024	27-06-2024
AshirwadCapital	1:2	10-05-2024	25-06-2024	25-06-2024
BPCL	1:1	09-05-2024	22-06-2024	21-06-2024
HINDPETRO	1:2	09-05-2024	21-06-2024	21-06-2024
PVV Infra	1:5	29-04-2024	21-06-2024	21-06-2024
Motilal Oswal	3:1	26-04-2024	10-06-2024	10-06-2024
Remus Pharma	3:1	23-04-2024	06-06-2024	06-06-2024
Veljan Denison	1:1	30-03-2024	29-05-2024	29-05-2024
Inox Wind	3:1	25-04-2024	25-05-2024	24-05-2024
GM Breweries	1:4	04-04-2024	25-05-2024	24-05-2024
Newtime Infra	2:1	11-04-2024	23-05-2024	22-05-2024
Timescan Logist	1:1	28-03-2024	17-05-2024	17-05-2024
Titan Intech	3:5	27-03-2024	17-05-2024	17-05-2024
Arham Tech	1:1	14-03-2024	03-05-2024	03-05-2024
Nidhi Granites	1:1	15-03-2024	02-05-2024	02-05-2024
Anup Eng	1:1	20-03-2024	23-04-2024	23-04-2024
Naapbooks	2:1	07-03-2024	19-04-2024	19-04-2024
Shukra Pharma	3:1	29-02-2024	20-04-2024	19-04-2024
Integrated Ind	1:1	24-02-2024	16-04-2024	16-04-2024
Grauer and Weil	1:1	26-02-2024	10-04-2024	10-04-2024
Promax Power	1:1	20-02-2024	09-04-2024	08-04-2024
Cupid	1:1	23-01-2024	04-04-2024	04-04-2024
Sunrise Efficie	1:2	27-02-2024	03-04-2024	03-04-2024
Lorenzini Appar	6:11	12-02-2024	28-03-2024	28-03-2024
Advani Hotels	1:1	29-01-2024	20-03-2024	20-03-2024
Paisalo Digital	1:1	31-01-2024	20-03-2024	20-03-2024
Nupur Rec	1:2	13-02-2024	20-03-2024	20-03-2024
Colab Cloud	1:1	24-01-2024	19-03-2024	19-03-2024
Kesar India	6:1	14-02-2024	19-03-2024	19-03-2024
Rama Steel Tube	2:1	24-01-2024	19-03-2024	19-03-2024
SPRIGHT	1:1	08-02-2024	18-03-2024	18-03-2024
M K Proteins	2:1	30-01-2024	15-03-2024	15-03-2024
Guj Amb Exports	1:1	02-02-2024	16-03-2024	15-03-2024
Sunshine Capita	7:1	12-01-2024	08-03-2024	07-03-2024
Capri Global	1:1	27-01-2024	05-03-2024	05-03-2024
FIEM Ind	1:1	15-01-2024	28-02-2024	28-02-2024
DRC Systems	2:1	18-01-2024	27-02-2024	27-02-2024
Rajshree Polypa	2:1	17-01-2024	26-02-2024	26-02-2024
MAS Financial S	2:1	17-01-2024	22-02-2024	22-02-2024
SG MART	1:1	08-01-2024	22-02-2024	22-02-2024
LOGICA	5:1	17-01-2024	21-02-2024	21-02-2024
Choice Internat	1:1	15-01-2024	20-02-2024	20-02-2024
KPIGREEN	1:2	30-12-2023	15-02-2024	15-02-2024
Akshar Spintex	1:5	22-12-2023	15-02-2024	15-02-2024
Gourmet Gateway	2:1	29-12-2023	12-02-2024	12-02-2024
K.P. Energy	2:1	30-12-2023	12-02-2024	12-02-2024
Shreeji Translo	1:3	21-12-2023	08-02-2024	08-02-2024
Maagh Advertisi	1:4	20-12-2023	05-02-2024	05-02-2024
Sandur Manganes	5:1	18-12-2023	02-02-2024	02-02-2024
Network People	2:1	26-12-2023	02-02-2024	02-02-2024
Shreeoswal Seed	1:5	18-12-2023	02-02-2024	02-02-2024
Salasar Techno	4:1	20-12-2023	01-02-2024	01-02-2024
Kanani Ind	1:1	09-12-2023	30-01-2024	30-01-2024
Sinclairs Hotel	1:1	22-12-2023	29-01-2024	29-01-2024
Ishan Intl.	2:1	14-12-2023	25-01-2024	25-01-2024
SBC Exports	1:2	05-12-2023	19-01-2024	19-01-2024
MK Exim	1:2	02-12-2023	17-01-2024	17-01-2024
Newgen Software	1:1	27-11-2023	12-01-2024	12-01-2024
Integra Essenti	1:1	27-11-2023	11-01-2024	11-01-2024
Specular Market	1:50	04-12-2023	06-01-2024	05-01-2024
Allcargo	3:1	10-11-2023	02-01-2024	02-01-2024

 

View Companies Splits.

Company	Old FV	New FV	Split Date
FEDDERS HOLDING	10	1	20-09-2024
Rajshree Polypa	10	5	18-09-2024
Sportking India	10	1	13-09-2024
OneSource Ideas	10	1	13-09-2024
Krishna Inst.	10	2	13-09-2024
Varun Beverages	5	2	12-09-2024
Andhra Paper	10	2	11-09-2024
Sapphire Foods	10	2	05-09-2024
Bondada Eng.	10	2	02-09-2024
Shekhawati Ind	1	10	28-08-2024
Aditya Vision	10	1	27-08-2024
Money Masters	10	1	22-08-2024
Jamshri	1000	10	16-08-2024
Milkfood	10	5	13-08-2024
THINKINK PICTUR	5	1	09-08-2024
Rushil Decor	10	1	09-08-2024
Kapston Service	10	5	09-08-2024
Maruti Infra	10	2	09-08-2024
Filatex Fashion	5	1	09-08-2024
Balmer Invest	10	1	09-08-2024
Aartech Solonic	10	5	09-08-2024
Cellecor	10	1	09-08-2024
AAYUSH WELLNESS	10	1	05-08-2024
Panorama Studio	10	2	31-07-2024
Magellanic	10	2	26-07-2024
KSB Pumps	10	2	25-07-2024
Almondz Global	6	1	23-07-2024
NHC Foods	10	1	22-07-2024
Elecon Eng	2	1	19-07-2024
KPIGREEN	10	5	18-07-2024
Vantage Knowled	10	1	12-07-2024
WPIL	10	1	12-07-2024
PG Electroplast	10	1	10-07-2024
Bridge Sec	10	1	10-07-2024
Remsons Ind	10	2	05-07-2024
Kaycee Ind	100	10	05-07-2024
Vertoz	10	1	05-07-2024
Worth Invt	10	1	03-07-2024
Avonmore Cap	10	1	28-06-2024
Share India	10	2	27-06-2024
Premier Explo	10	2	21-06-2024
Visco Trade Ass	10	2	14-06-2024
KAMOPAINTS	5	1	14-06-2024
Colorchips New	2	10	12-06-2024
Davangere Sugar	10	1	31-05-2024
Balaxi Pharma	10	2	30-05-2024
Bharat Dynamics	10	5	24-05-2024
Som Distillerie	5	2	24-05-2024
Vardhman Poly	10	1	17-05-2024
Canara Bank	10	2	15-05-2024
IPRU NF100 ETF	10	1	10-05-2024
SONAM	10	5	10-05-2024
Bhagiradh Chem	10	1	02-05-2024
Bharat Bijlee	10	5	24-04-2024
Pulsar Intl	10	1	19-04-2024
Suratwwala BG	10	1	18-04-2024
Sprayking	10	2	12-04-2024
Bodhi Tree Mult	10	1	05-04-2024
Cupid	10	1	04-04-2024
Dhatre Udyog	10	1	28-03-2024
Lorenzini Appar	10	1	28-03-2024
Persistent	10	5	28-03-2024
United Van Hors	10	5	26-03-2024
Refex Ind	10	2	22-03-2024
Colab Cloud	10	2	19-03-2024
SPRIGHT	10	1	18-03-2024
Waaree Renewabl	10	2	15-03-2024
OK Play	10	1	11-03-2024
Manorama Indust	10	2	07-03-2024
Sunshine Capita	10	1	07-03-2024
Capri Global	2	1	05-03-2024
Tiger Logistics	10	1	04-03-2024
Remedium Lifeca	5	1	23-02-2024
SG MART	10	1	22-02-2024
Maagh Advertisi	10	1	05-02-2024
HDFCSENSEX	250	25	02-02-2024
HDFCNIFBAN	223	22	02-02-2024
Growington Vent	10	1	31-01-2024
Dolphin Offshor	10	1	25-01-2024
Ishan Intl.	10	1	25-01-2024
Trishakti Ind	10	2	16-01-2024
Kaushalya Infra	10	1000	12-01-2024
Franklin Ind	10	1	11-01-2024
Cochin Shipyard	10	5	10-01-2024
Nestle	10	1	05-01-2024
7NR Retail	1	10	05-01-2024
Pearl Global In	10	5	05-01-2024
Indian LinkChai	100	10	03-01-2024

There is a high prevalence of bonus issues and stock splits among India, as they are worldwide. The big question is whether these bonus issues and stock splits actually provide shareholders with additional value. Both of these situations result in an increase in the number of shares issued to shareholders and a decrease in the share price. Consequently, in terms of the wealth effect, the effect is insignificant as the increase in number of shares and the fall in price ex-bonus or ex-split tend to compensate one another. In order to understand bonus and split more fully, let us first examine the concept in more detail.

What are bonus shares?

Bonus issue is when the company announces to give additional shares in a certain proportion as a reward to its existing shareholders. Bonus shares are given in addition to the shares already held.

For example, if a company has declared bonus in 2:1, then each shareholder who has one share will get two additional shares.

If someone has a total of 100 shares of a company, then after the bonus issue, he will have a total of 300 shares (100 + 200). Shareholders do not have to pay any amount to get bonus shares.

If a company has issued a bonus issue in 4:1, it means that the shareholder holding one share will get four additional shares. The second figure of the bonus issue ratio shows the number of actual shares.

Why do companies issue bonus shares?

Any company has the right to issue bonus to its shareholders. Companies keep rewarding their shareholders in different ways from time to time.

If the company wants, it can issue bonus by not paying dividend in the form of cash out of its reserves. Whether to give dividend or bonus to the shareholders, it completely depends on the company.

Thus the company can give bonus to its existing shareholders out of its retained earnings or reserves.

The company issuing the bonus also creates a positive image in the market, which is also one of the main reasons for issuing the bonus.

Effect of Bonus Shares on Share Price

As a conscious investor, you should also know the Bonus Share meaning along with how the Bonus issue will affect the share price.

Let's assume XYZ Company issued a bonus issue in 2:1. Mr. Manoj has total 100 shares of this company and the current share price of the company is ₹ 300.

	No. of Shares	Share Price	Investment Value
Before Bonus	100	₹300	₹30,000
After Bonus	300	₹100 (₹300/3 Shares)	₹30,000

In this way your investment after the bonus will remain the same. But the value of the share will be reduced in proportion to the bonus share. In this example 2 bonus shares are issued instead of one. Therefore, after the bonus, there will be a total of 3 shares, which is divided into the current market price of the share and the new share price is derived.

If a company has issued a bonus issue in 4:1 and the share price is ₹1000 then the value of one share after the bonus issue will be ₹200 (₹1000/5).

Impact of Bonus Issue on Balance Sheet

You can understand the effect on the balance sheet after the release of bonus with the help of this example –

Bonus issue in 2:1

• Shareholder Equity (Before Bonus)
• Share Capital – ₹ 10 Crore (Face Value ₹ 10 × 1 Crore Shares)
• Reserves – ₹ 50 Crore
• Total Shareholder Equity – ₹ 60 Crore

 

Shareholder Equity (After Bonus)

• Share Capital – ₹ 30 Crore (Face Value ₹ 10 × 3 Crore Shares)
• Reserves – ₹ 30 Crore
• Total Shareholder Equity – ₹ 60 Crore

 

In this example the total number of shares before the bonus was 1 crore. But after issue of bonus shares, the shares become 3 crores. Due to this the share capital will be 30 crores. Out of the additional 20 crore reserve, share capital has been transferred. Thus there will be no impact on the total shareholder equity.

Keep in mind that there is no change in the face value of the company's shares in a bonus issue.

Bonus Share Declaration and Bonus Issue Important Dates

There are some important dates related to the bonus issue that you need to keep in mind.

Bonus Announcement Date – On this day the company announces the bonus to its shareholders.

Record Date – Record date is the date on which the list of eligible shareholders is prepared. Shareholders whose names are in the record list on this day will be entitled to get the bonus.

Ex – Bonus Date – This date is 2 days before the record date. Because there is T+2 settlement in India. If someone has bought shares on X bonus date then he will be entitled to get bonus and whoever has sold shares on this day will not get any bonus.

Bonus Share Credit Date – On this day, bonus shares are credited to the account of the share holder.

Suppose ABC Ltd. has declared a bonus issue on 1st January. Mr. Vijay holds 100 shares of ABC Ltd. The record date for this issue is January 22 and the ex-record date is January 20.

If Vijay holds the shares till January 22, he will be entitled to get the bonus. If Vijay sells these shares to Ajay on 20th January itself then Ajay will get bonus share and not Vijay.

If Vijay had sold his shares to Ajay on January 21, the bonus shares would still be received by Vijay. Because his name will be recorded in the share book on the record date. These shares will be credited in Ajay's demat on T+2 i.e. on 23rd January in his name which will not count for bonus.

 

Bonus Share Eligibility

If a company has announced a bonus and you own the shares of that company, then you will be entitled to get the bonus. Provided you hold those shares till the record date of the bonus.

Bonus shares are credited to the demat account of the investor.

 

Bonus Share Benefits

Benefits to the company from bonus

• Issuance of bonus lowers the share price thereby increasing the amount of liquidity in the company.
• If the company issues bonus, then the reputation of the company increases and the confidence of the investors is instilled in the future of the company.
• If the company has more reserves, the company can transfer the share capital by issuing bonus from the reserve.

Benefits to the investor

• With the issuance of bonus, the number of shares of the company with the investors increases.
• With the increase in the number of shares, the investor gets more dividend than before. Because dividend is issued per share.
• The share price of the company decreases after the bonus shares. With this, such investors who were not able to invest in the company's stock due to the high share price will also have a chance to invest in the shares.
• If the market sentiment is correct, then after the bonus issue, the share price is expected to increase due to the decrease in the share price.
• Issuing bonus is considered good for the investors as the company has rewarded the investors by issuing shares. Because the company increases its liability by increasing the outstanding shares.

 

Disadvantages of Bonus Shares

As an investor, there is no special loss from the bonus. This does not change the profit of the company, but the number of outstanding shares increases, which definitely leads to a fall in EPS.

Talking from the point of view of the company, the company does not get any cash from it.

If the company continues to issue bonus shares in the form of dividend regularly, then the cost of its bonus issue increases in the coming years.

 

Guidelines to be followed by the company before issue of Bonus Shares

 The Association's manual must approve the bonus issue before the bonus shares are issued. If the Association's rules are unable to do so, the company will have to pass a special resolution act at its general meeting.

• In case of a general meeting, the bonus issue should also be approved by the shareholders
• Guidelines issued by SEBI to be followed
• The company should ensure that the total share capital as a result of the bonus issue does not exceed the authorized share capital. In case of such a situation, the capital clause in the Memorandum of Association should be amended by increasing the authorized capital
• If the company has taken the loan, the financial institution(s) involved should be informed first
• Before bonus issue, a company should inform the Reserve Bank and get its approval
• Bonus shares to be issued must be fully payable. If the shares are partly paid, it will make the shareholders liable to pay the unpaid amount

 

What is stock split?

As a stock market investor, you need to be aware of some important stock market terms. One important term among them is stock split or share split. Many investors get worried when there is a stock split in any of their invested shares and they do not understand what are stock splits and what are they supposed to do? As recently happened in IRCTC stock split. Many investors get worried when there is a stock split in any of their invested shares and they do not understand what are stock splits and what are they supposed to do? As happened in the recent IRCTC stock split.

• Stock split, as the name suggests, is the process of splitting the shares of a company. Stock split is a corporate action in which companies divide their stocks in a fixed ratio.
• In a share split or stock split, the shares of that company are split into pieces and each piece becomes a new share. Due to stock split, the shares of the company increase in the market.
• Along with this, the share price and face value of the company are reduced in the same proportion in which the stock split takes place.

 

Example – What is a stock split?

With this example you will easily understand Stock Split meaning in Hindi –

Let's assume we have 10 shares of ABC Ltd. whose share price is ₹1,000. While its face value is ₹10. Thus the value of our total investment is ₹10,000 (₹1,000×10).

ABC Ltd. decides to split its shares in 2:1. This means that 1 share of this company will be converted into 2 shares. With this the share price and face value will be halved (being in 2:1 it will be divided by two)

After the stock split, our 10 shares will be converted into 20 shares. Whereas the share price will be ₹1,000 to ₹500. Also the face value will be ₹ 10 to ₹ 5.

2:1	Before Stock Split	After Stock Split
Total Share	10  Shares	20 Shares
Share Price	₹1,000	₹500
Face Value	₹10	₹5
Total Investment Value	₹10,000	₹10,000

There will be no impact on the total investment value due to the stock split.

If ABC Ltd. decides to do a stock split in the ratio of 5:1, it means that 1 share of ABC Ltd will be converted into 5 shares. That is, the shareholder who has one share in him will get 5 shares.

Also the share price and face value will become 1/5. Thus we will have 50 shares of ABC Ltd. The share price will become ₹200 and the face value will be ₹2.

5:1	Before Stock Split	After Stock Split
Total Share	10  Shares	20 Shares
Share Price	₹1,000	₹200
Face Value	₹10	₹2
Total Investment Value	₹10,000	₹10,000

Splitting the stock does not affect the total investment value. Apart from this, the market capitalization of the company is also not affected by the stock split. The capitalization of the company remains the same as it was earlier.

Why does a company do a stock split?

Now you must be thinking that why a company does a stock split? The main reason for doing a stock split is the high share price of a company.

Another reason may be that the share price of the company is very high relative to its peers. As the price of all companies in the auto sector is running between ₹ 300 to ₹ 500, while the value of 1 share of an auto sector company has reached ₹ 2,000.

In such a situation most of the investors would not like to invest in that company. In such a situation, that company can settle its stock price between ₹ 300 to ₹ 500 by bringing Stock Split.

In another reason, the company can also do stock split to increase the amount of liquidity. Due to a stock split, small investors think that the company's stock has become cheaper than before and thus the demand for the shares increases.

Key Takeaways:

• A stock split increases the total number of outstanding shares of a company.
• There is no impact on the market cap of the company.
• The stock price and face value are reduced in proportion to the stock split.

 

Advantages of Stock Split

• Benefits to investors:

Older investors who already have shares of the company, they have an increase in the number of shares. As the number of shares increases, they get more dividend.

Small investors can also easily buy shares of the company due to the fall in the value of the shares.

• Company advantage:

Due to a stock split, the share price decreases, this increases the amount of liquidity in the company’s stock.

 

What is Reverse Stock Split?

A reverse stock split is exactly the opposite of a stock split. By doing a reverse stock split, companies reduce their shares in the market, which increases the company's stock price.

When a company feels that its share price has fallen significantly compared to its competitors, they use a reverse stock split to increase the stock price. There is no impact on our investment value even in reverse stock split.

Let us understand Reverse Share Split with the help of an example –

Let's say we have 100 shares of ABC Ltd. The price of one share is ₹10 and the face value is ₹2. Thus our total investment value is ₹1,000.

If ABC Ltd. decides to reverse stock split in 1:5 it means that every 5 shares of ABC Ltd. will get converted into 1 share. Also the share price and face value will become 5 times.

After the reverse stock split, we will have 20 shares (100 shares / 5). The share price will be ₹50 (₹10×5) and the face value will be ₹10 (₹2×5). Whereas the investment value will remain ₹1,000 only.

1:5	Before Stock Split	After Stock Split
Total Share	100  Shares	20 Shares
Share Price	₹10	₹50
Face Value	₹2	₹10
Total Investment Value	₹1,000	₹1,000

 

Stock Split Vs Bonus issue

	Bonus Issue	Stock Split
Meaning	In bonus issue additional shares are given free of cost to the shareholders.	In a stock split, the shares of the existing shareholders of the company are divided in a fixed proportion.
Example	For a 4:1 bonus issue, shareholders will receive four shares free of charge for each share.	In a stock split of 1:2 ratio, for every 1 share, 2 shares will be awarded.
Face value	No change.	Decreases in stock splits.
Purpose	To pay as dividend.	Lower share price, increase liquidity.

 

Throughout this article, you learned what a bonus, a stock split, and a reverse stock split are. Additionally, you learned how stock splits and bonus shares differ.

The market continues to see many companies issue bonus issues from time to time. It is pertinent to note that this does not imply that none of these companies are worth investing in. Investing in a company involves a number of factors, including bonuses.

Although bonuses are generally thought to be suitable for investors, it is not advisable to invest in them solely due to the fact that the company is issuing bonuses. A thorough understanding of how to select a suitable stock is essential for the selection of stock. Stock market investing requires consideration of bonuses. Therefore, it becomes your responsibility to review the bonus history of the company.