Bonus Shares

Bonus shares are additional shares that a company issues to its existing shareholders without any additional cost, based on the number of shares that a shareholder already owns. This is often done in place of paying dividends and is a way for companies to distribute accumulated earnings back to their shareholders.

Read more

List of Upcoming Bonus Shares in 2024

    CompanyBonus RatioAnnouncementRecordEx-Bonus
    Filtra Consultants & Engineers Ltd1:304-07-202413-07-202412-07-2024
    Alphalogic Techsys Ltd14:4804-07-202413-07-202412-07-2024
    Alliance Integrated Metaliks Ltd2:101-07-202411-07-202411-07-2024
    Clara Industries Ltd4:101-07-202408-07-202408-07-2024
    Vertoz Advertising Ltd1:128-06-202405-07-202405-07-2024
    Remedium Lifecare Ltd3:126-06-202406-07-202405-07-2024
    Kaycee Industries Ltd4:101-07-202406-07-202405-07-2024
    GPT Infraprojects Ltd1:121-06-202403-07-202403-07-2024

    What Are Bonus Shares?

    Bonus shares, also known as a scrip dividend or a capitalization issue, are issued by a company to its shareholders free of charge. They are given in proportion to the shares already held by shareholders. For example, if a company issues bonus shares in the ratio of 2:1, shareholders receive two additional shares for every one share they own.


    Purpose of Issuing Bonus Shares

    Companies issue bonus shares for several reasons:

    - To Enhance Market Perception: Issuing bonus shares can make a stock more affordable and increase market interest.

    - To Retain Earnings: By issuing bonus shares, companies can use their retained earnings without affecting their cash flow.

    - To Improve Liquidity: Bonus shares increase the number of shares in the market, improving liquidity.


    How Bonus Shares Work

    When a company announces a bonus issue, it specifies a record date. All shareholders who hold the company's shares on this date are eligible for the bonus shares. The company also specifies the ratio of bonus shares to existing shares.



    Suppose a company declares a 1:2 bonus share issue, meaning one bonus share for every two existing shares. If you own 200 shares of the company, you will receive 100 bonus shares. After the bonus issue, you will have a total of 300 shares.


    Benefits of Bonus Shares

    - Increased Shareholding: Shareholders get more shares without any additional investment.

    - Signal of Good Health: A bonus issue indicates the company has sufficient retained earnings and is in good financial health.

    - Market Value Adjustment: Bonus shares can help adjust the market value of a company’s shares, making them more accessible to small investors.


    Tax Implications of Bonus Shares

    In most jurisdictions, bonus shares are not taxable when they are received. However, the sale of bonus shares may attract capital gains tax. The cost of acquisition for bonus shares is usually considered zero, and the holding period for tax purposes starts from the date of allotment of bonus shares.


    Risks and Considerations

    While bonus shares can be beneficial, they are not without risks:

    - Dilution of Share Value: The issuance of bonus shares increases the total number of shares, which can dilute the share price.

    - No Immediate Cash Benefit: Unlike dividends, bonus shares do not provide immediate cash benefits to shareholders.

    - Tax on Sale: The sale of bonus shares can result in capital gains tax, which investors need to consider.

    Check More Stocks

    M Cap
    1Y Return
    3Y Return
    5Y Return
    Industry PE
    Net Profit Qtr
    Net Profit QoQ %
    Net Profit YoY %
    Net Profit 3Y Change %
    Rev Qtr (in Cr)
    Rev QoQ (in %)
    Rev 1Y change %
    Rev 3Y change %
    Profit Mar Qtr
    Profit Mar QoQ
    Profit Mar 1Y Change%
    Profit Mar 3Y Change%
    M Cap
    imgAdani Power Ltd


    LARGE CAP168.37%188.95%581.99%1032.3%13.7530.126.881.82737.24 Cr-0.03%94.18%1540.09%13363.692.87%29.86%92.02%41.37%-2.81%49.53%754.11%Utilities273823.3855.41%30.81%542037346
    imgTata Motors Ltd


    LARGE CAP37.21%64.39%227.72%531.72%12.4146.3312.630.9217528.59 Cr145.31%1082.46%-344.36%119213.358.57%26.58%75.32%7.26%125.94%834.16%-239.39%Consumer Cyclical373253.1219.5%14.69%82.995845401
    imgAdani Wilmar Ltd


    MID CAP-42.8%-16.6%25.16%25.16%294.5297.755.041.06154.56 Cr-24.98%-69.17%-73.83%13238.043.19%-11.9%38.21%0.33%-27.3%-65.01%-81.06%Edible Oil43636.713.42%9.6%1.311230524
    imgInfosys Ltd


    LARGE CAP1.98%20.3%8.28%119.64%2736.147.660.787975 Cr30.46%8.88%35.14%37923-2.31%4.7%52.95%17.08%33.55%3.99%-11.64%Technology710723.4736.58%45.07%63.376942167
    imgTata Steel Ltd


    LARGE CAP20.67%43.26%34.31%260.22%-46.3429.781.431.46554.56 Cr6.21%-160.8%-159.95%58445.896.79%-5.83%46.63%-2.14%-0.55%-164.56%-140.88%Industrials210584.627.79%13.67%-3.9432631185
    imgYes Bank Ltd


    MID CAP21.57%44.63%88.93%-72.53%58.1817.941.091.25467.29 Cr92.63%-30.85%-104.48%9099.610.39%19.64%-29.42%2.74%74.5%-42.2%-106.34%Financial Services80219.291.51%NA0.26394334395
    imgZomato Ltd


    LARGE CAP160.66%177.57%76.56%76.56%556.182.050.77175 Cr26.81%-20.57%-59.3%35628.33%68.86%171.79%-13.72%17.06%-52.96%-85.02%Technology196373.940.17%0.25%-1.1651185834
    imgITC Ltd


    LARGE CAP-29.21%-2.82%122.57%69.42%27.9628.427.410.685187.22 Cr-3.95%6.54%55.06%17767.61-0.59%-0.08%43.85%29.28%-3.38%6.63%7.79%Consumer Defensive573321.2229.21%37.4%16.6216250741
    imgWipro Ltd


    LARGE CAP16.55%34.89%-2.73%115.53%26.8336.144.341.022858.2 Cr5.84%-2.24%2.25%22208.30.01%-0.8%44.93%12.38%5.82%-1.45%-29.45%Technology292981.5815.13%19.03%21.278048951
    imgHDFC Bank Ltd


    LARGE CAP-27.03%-3.35%6.71%35.52%17.9617.943.211.0617622.38 Cr2.11%20.88%68.77%124391.358.15%22.05%39.16%22.47%-5.58%-0.96%21.28%Financial Services1234570.0116.96%NA82.7116687703

    Frequently Asked Questions

    Companies issue bonus shares as a way to reward shareholders without distributing cash dividends. It capitalizes a part of the company's retained earnings into equity capital.

    Bonus shares are different from stock splits. In a stock split, the number of shares increases, but the overall value of the investment remains the same. With bonus shares, shareholders receive additional shares for free, increasing the number of shares they hold.

    Bonus shares are issued by a company's board of directors after obtaining approval from shareholders. The company allocates bonus shares based on the shareholder's existing holdings.

    No, bonus shares do not dilute the value of existing shares. While the number of shares outstanding increases, the value of the company remains the same, so the proportional ownership of each shareholder remains unchanged.

    Yes, bonus shares can be sold immediately after receiving them, just like any other shares. The decision to sell or hold the shares depends on the shareholder's investment strategy.


    Yes, companies can issue bonus shares every year, but they must meet certain criteria and obtain approval from shareholders.

    Shareholders should update their records to reflect the additional shares received. They may also consider consulting with a financial advisor to understand the implications of the bonus shares on their investment portfolio.

    INDmoney is 100% Safe and Secure!

    Your security and privacy are our top priority!

    • ISO Certification Icon


      ISO Certified

    • Audited By Icon

      Audited by

      cert-in empanelled auditors

    • Secured Icon

      AES 256-BIT

      SSL Secured


    Your personal information is protected.

    With AES 256-bit encryption and TLS 1.3 secure data in transit.


    Trusted by 10 million+ happy investors

    Open your account in a minute. Invest in Indian Stocks, US Stocks, Mutual Funds, ETFs, Fixed Deposit and NPS.