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
    Milkfood Ltd1:101-08-202413-08-202413-08-2024
    EIH Associated Hotels Ltd1:125-07-202413-08-202413-08-2024
    GRP Ltd3:125-07-202412-08-202412-08-2024
    Gujarat Themis Biosyn Ltd1:231-07-202409-08-202409-08-2024
    Maruti Infrastructure Ltd1:230-07-202409-08-202409-08-2024
    Sakuma Exports Ltd4:101-08-202410-08-202409-08-2024
    Caspian Corporate Services Ltd2:130-07-202409-08-202409-08-2024
    Aartech Solonics Ltd1:231-07-202409-08-202409-08-2024

    What Are Bonus Shares?

    Bonus shares are additional shares distributed by a company to its existing shareholders at no extra cost. This means that shareholders receive extra shares in proportion to the number of shares they already own.

    For example, suppose a company issues bonus shares in a 2:1 ratio. In that case, shareholders will receive two bonus shares for every share they currently own. This increases the total number of shares held by the shareholders without requiring them to make any additional payment.

     

    Types of Bonus Shares

    1. Simple Bonus Shares: These are issued free of charge to existing shareholders in proportion to their current holdings. For example, suppose a company announces a bonus issue of 1:2. In that case, shareholders receive one additional share for every two shares they already own.
    2. Capitalized Bonus Shares: These are issued using the company's reserves or profits. This type of bonus share is typically funded from accumulated profits, such as the profit and loss account or capital reserves.
    3. Bonus Shares from Share Premium Account: This involves issuing bonus shares through the capitalization of the company's share premium account. This method allows companies to convert the share premium into equity shares without affecting cash flow.

     

    Why Bonus Shares are Issued?

    Companies issue bonus shares for several reasons:

    • To Enhance Market Perception: By increasing the number of shares outstanding, the price per share typically decreases. This can make the stock appear more affordable to smaller investors, potentially increasing interest and trading volume.
    • To Retain Earnings: Instead of distributing profits as cash dividends, companies can convert a portion of their retained earnings into equity by issuing bonus shares. This helps maintain funds for reinvestment in the business.
    • To Improve Liquidity: A larger number of shares in the market can increase trading activity, leading to better liquidity. This means investors can buy or sell shares more easily without significantly impacting the price.

     

    How Bonus Shares Work?

    Bonus shares are add-on shares given to you at no additional cost. They are a reward for existing shareholders who boost the liquidity of their stock. The issuance of bonus shares signals that a company is performing well and is confident about its future growth.

    Many companies have announced plans to issue bonus shares in India in 2024. Shareholders can look forward to benefiting from these bonus share offerings, which can enhance their overall holdings and represent the company's confidence in its future performance.

    If you are interested in upcoming bonus shares, refer to the INDmoney bonus shares list.

     

    What are the Benefits of Bonus Shares?

    The benefits of bonus shares are:

    • It increases the total number of shares you own
    • You don't have to pay anything extra for bonus shares
    • It can make the shares more attractive if you are a new investor, as it shows that the company is doing well
    • Bonus shares don't have any tax implications when they are issued
    • It doesn't reduce the value of your existing shares

     

    Taxation on Bonus Shares

    When companies give bonus shares to their shareholders, it's important to know that these bonus shares are exempt from taxes. But if you decide to sell them later, you might have to pay capital gains tax on any profit you make from selling them.

    Check More Stocks

    Name
    Price
    M Cap
    Alpha
    1Y Return
    3Y Return
    5Y Return
    PE
    Industry PE
    PB
    Beta
    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%
    Sector
    M Cap
    ROE
    ROCE
    EPS
    Volume
    imgAdani Power Ltd

    ₹535.90

    LARGE CAP-22.21%1.89%417.72%793.5%17.228.126.881.523297.52 Cr-15.72%94.18%1540.09%13338.88-10.81%29.86%92.02%41.37%-5.51%49.53%754.11%Utilities206770.555.41%30.81%543749073
    imgTata Motors Ltd

    ₹798.75

    LARGE CAP-4.8%13.32%65.36%408.91%9.2836.412.631.073450 Cr-39.39%1082.46%-344.36%100534-6.32%26.58%75.32%7.26%-35.3%834.16%-239.39%Consumer Cyclical300663.4119.5%14.69%82.9915573233
    imgAdani Wilmar Ltd

    ₹311.35

    MID CAP-38.93%-16.42%16.63%16.63%41.38138.465.040.94281.91 Cr-9.54%-69.17%-73.83%14460.452.06%-11.9%38.21%0.33%-11.36%-65.01%-81.06%Edible Oil40660.453.42%9.6%1.31799567
    imgInfosys Ltd

    ₹1,923.65

    LARGE CAP12.53%29.15%9.01%168.02%29.5341.477.660.756516 Cr2.23%8.88%35.14%409864.25%4.7%52.95%17.08%-1.94%3.99%-11.64%Technology798227.9536.58%45.07%63.374274645
    imgTata Steel Ltd

    ₹149.88

    LARGE CAP-5.39%14.03%26%264.62%63.125.211.431.44758.84 Cr-17.39%-160.8%-159.95%53489.73-1.7%-5.83%46.63%-2.14%-15.96%-164.56%-140.88%Industrials185118.227.79%13.67%-3.9439059139
    imgYes Bank Ltd

    ₹21.84

    MID CAP-9.05%6.12%53.5%-61.8%36.4216.381.621.25566.59 Cr9.8%74.66%-136.84%9225.452.55%23.98%42.4%3.9%7.08%40.88%-125.87%Financial Services67370.912.45%NA0.45113868644
    imgZomato Ltd

    ₹295.30

    LARGE CAP136.93%155.76%107.15%140.44%356.416.950.71176 Cr-30.43%-136.15%-142.99%479914.1%71.13%507.58%2.9%-39.03%-121.12%-107.08%Technology292357.375.15%5.18%0.451131895
    imgITC Ltd

    ₹464.95

    LARGE CAP-16.16%4.13%100.15%95.13%28.6428.957.410.625054.43 Cr-2.37%6.54%55.06%20581.5712.22%-0.08%43.85%29.28%-13%6.63%7.79%Consumer Defensive589446.929.21%37.4%16.6211703384
    imgWipro Ltd

    ₹303.75

    LARGE CAP24.15%41.39%-7.54%147.38%26.4541.474.341.093226.6 Cr6.26%-2.24%2.25%22301.61.54%-0.8%44.93%12.38%4.65%-1.45%-29.45%Technology311152.6515.13%19.03%10.6359285213
    imgHDFC Bank Ltd

    ₹1,870.00

    LARGE CAP-3.85%12.41%21.55%49.31%20.3916.382.50.9517825.91 Cr8.2%39.27%101.24%121456.743.81%99.35%161.73%15.7%4.23%-30.13%-23.11%Financial Services1418773.3716.88%NA86.1513473956

    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

      27001:2022

      ISO Certified

    • Audited By Icon

      Audited by

      cert-in empanelled auditors

    • Secured Icon

      AES 256-BIT

      SSL Secured

    img

    Your personal information is protected.

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

    img

    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.