Company Bonus Ratio Announcement Record Ex-Bonus

Frequently Asked Questions About Bonus Shares

  • Bonus shares are extra shares that are given to current shareholders at no additional cost based on how many shares they currently own.
  • These are the company's accumulated earnings that are converted into free shares rather than being distributed as dividends.
  • Sundaram Clayton has given the highest bonus share 116:1 ex-bonus date 24th March, 2023
  • The shares are credited in the case of a bonus issue a few days (typically 15 days) after the ex-date.
  • Thus, the investor is unable to sell the share before it is credited to your Demat account because doing so could result in an auction.
  • It is advantageous for the company's long-term shareholders who want to increase their investment.
  • Because the company uses the cash for business growth, bonus shares increase investors' confidence in the company's operations.
  • According to the bonus number of shares issued in the bonus issue, the stock price will be adjusted.
  • Consider a scenario where a business announced a 4:1 bonus issue.
  • Shares are priced at Rs.100 each before bonuses.
  • If there are 100 shares, then: (100*100)/400 = Rs 25 for the stock price following the bonus issue.
  • Existing shareholders receiving additional shares in a specific ratio is known as a bonus issue.
  • If a 4:1 bonus issue is announced, for instance, shareholders will receive four shares for every share they currently own.
  • Therefore, if an investor owns 10 shares of a particular company, they will receive 40 shares in total (4 * 10).