Reliance board approves 1:1 bonus issue: Three other companies to issue bonus shares in September; check list

A bonus issue is the issuance of new shares to existing shareholders at no additional cost. Companies usually announce bonus issues to reward shareholders and capitalise on their accumulated reserves. Bonus issues also help enhance the liquidity and affordability of shares, which can create more demand for these stocks.

Consequently, a company’s share price tends to rise on stock exchanges ahead of the issuance of bonus shares.

If you are tracking the RIL bonus issue, here’s a look at some other upcoming bonus issues that you can watch out for in September, keeping in mind their investment goals.

Rites Ltd (Record date: 20 September)

The board of directors of RITES had approved a bonus issue in the ratio of 1:1 on July 31, 2024, while declaring its June quarter results.

In other words, shareholders would be credited with one additional share for each existing share of RITES they hold.

The record date for the bonus issue of shares has been fixed as September 20, 2024. In order to be eligible shareholders, shareholders need to have RITES shares credited to their demat accounts by this date.

Notably, this is the second time RITES has issued bonus shares. Earlier, in 2019, the company had announced a 1:4 bonus issue.

Saksoft Ltd (Record date: 19 September)

The company had said that it would issue one bonus share to shareholders for every four shares that they hold as of the record date.

The company revised last week's record date for the bonus issue of shares to September 19, from September 13, which had been announced earlier.

Saksoft is a smallcap IT company that provides technology services to companies in the industry verticals of fintech, logistics and transportation, healthtech and utilities.

Phoenix Mills (Record date: 21 September)

Phoenix Mills approved a bonus issue in a 1:1 ratio on July 31. Shareholders would be credited with one additional share for each existing share of the company they hold.

The record date for the bonus share issue has been fixed as September 21, 2024, subject to shareholders' approval at the company’s upcoming annual general meeting (AGM) on September 13.

Notably, Phoenix Mills had last issued bonus shares in December 2005 in a ratio of 4:1.

Besides RITES, Saksoft and Phoenix Mills three more companies would also issue bonus shares this month. AccelerateBS India Ltd would issue bonus shares in the ratio of 3:5, with its record date being September 12. Indo Cotspin had also announced a 7:10 bonus issue, with a record date of September 10.

Lastly, Franklin Industries would issue bonus shares in the ratio of 1:1 to its shareholders, with September 9 fixed as record date.