What does it mean by bonus shares in India? With the financial year coming to an end, there are many companies that have issued bonus shares. In this article, we will cover what bonus shares are and the companies issuing bonus shares.
Organisations issue bonus shares to restructure the company’s cash reserve, also termed bonus issues. When the organisation earns profit, the overall capital increases. Bonus shares are issued to the existing shareholders to bring down the earned capital in tandem with company liabilities.
By issuing the bonus shares, overall company shares in the market also increase. Let us understand this with an example. Suppose a company issues its shares at a 1:1 ratio. As such, if an existing shareholder has one share-- it will now increase to two shares.
However, the total value of the share does not change. If the share value earlier was Rs.100 per share, it now becomes Rs. 50 per share. This helps organisations increase retail participation, thus enhancing liquidity in the market.
Let us now look at the companies issuing bonus shares in 2023.
Astral Ltd.
Astral Ltd. is India’s leading producer of pipes (CPVC), fittings, and adhesives. The company is currently valued at Rs. 41,800 Cr.
Bonus Declared ratio: 1:3
Market Cap: 36.28 T Cr.
P/E Ratio: 69.20
Record Date: March 14, 2023
Ex Bonus Date: March 14, 2023
360 One WAM
Formerly known as IIFL Management Ltd, it is a leading wealth management company.
Bonus Declared ratio: 1:1
Market Cap: 15,393 Cr.
P/E Ratio: 19.04
Record Date: March 02, 2023
Ex Bonus Date: March 02, 2023
Rhetan TMT
Rhetan TMT is India’s leading manufacturer of TMT bars and round bars-- used for dams, bridges, and residential and commercial building constructions.
Bonus Declared ratio: 11:4
Market Cap: 117.54 Cr.
P/E Ratio: -
Record Date: March 10, 2023
Ex Bonus Date: March 10, 2023
ASCOM Leasing & Investment
ASCOM provides different types of loans against guarantees.
Bonus Declared ratio: 1:2
Market Cap: 350.25 Cr.
P/E Ratio: -
Record Date: March 06, 2023
Ex Bonus Date: March 06, 2023
Jayant Infra
Based in Chhattisgarh, the company provides overhead electrification services to railways.
Bonus Declared ratio: 2:1
Market Cap: 82.02 Cr.
P/E Ratio: 59.64
Record Date: March 01, 2023
Ex Bonus Date: March 01, 2023
Pulz Electronics
The company is into the production of customised sound systems for different auditorium shapes and sizes.
Bonus Declared ratio: 1:1
Market Cap: 53.27Cr
P/E Ratio: -
Record Date: March 01, 2023
Ex Bonus Date: March 01, 2023
Captain Pipes
This small-cap firm is one of India’s leading manufacturers and exporters of PVC pipes.
Bonus Declared ratio: 2:1
Market Cap: 360.50Cr
P/E Ratio: -
Record Date: March 02, 2023
Ex Bonus Date: March 02, 2023
Jet Infraventure
The company deals in real estate and real estate development projects in India.
Bonus Declared ratio: 1:1
Market Cap: 6.32 Cr
P/E Ratio: -
Record Date: April 23, 2023
Ex Bonus Date: April 23, 2023
Conclusion
With a DEMAT account, you can invest in any of the above-mentioned companies that seem to have a bright future. However, this information is only for notification purposes. It is advisable to do a thorough analysis before investing.
Disclaimer
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.