The issue of bonus shares is a corporate action in which additional shares are given to eligible shareholders without any additional cost, based upon the number of shares that a shareholder owns.
A bonus issue usually happens when the share price of the company is too high, to increase the liquidity of its shares, or to restructure a company’s reserves. Sometimes bonus issues are given to shareholders when companies are short of cash and shareholders expect a regular income.
Four stocks will start trading ex-bonus this week. These stocks are Bajaj Finserv Ltd., Bharat Electronics Ltd., G K P Printing & Packaging Ltd. and AAA Technologies Ltd.
Bajaj Finserv Ltd
The NBFC major’s shares will start trading ex-bonus on September 13, 2022, and the record date for the issue is September 14, 2022. The ratio for the issue is 1:1. This means that the company will issue one bonus share for every fully paid-up equity share that a shareholder owns, provided that they are eligible for the issue. The shares will start trading ex-bonus on September 13, 2022.
The company said during the announcement of its bonus issue that though the company has a small capital base, it has a very high share price as compared to its peers. Therefore potential shareholders will find it increasingly difficult to partake in its future if the share price increases further. This bonus issue will help to increase retail participation and increase their equity base.
AAA Technologies Ltd
The company is a premier independent auditing and consulting company in the area of IS Audit, Information Security, IT Assurance & compliance, and IT Governance and rendering these services since the year 2000. Its shares will start trading ex-bonus on September 13, 2022, and the record date is September 14, 2022.
The company will issue bonus shares in the ratio of 1:2. In other words, it will issue 1 bonus share for every 2 fully paid-up equity shares that an investor holds.
Bharat Electronics Ltd.
The Navratna Company has declared a bonus in the ratio of 2:1. This means that shareholders will receive two bonus shares for every equity share that they hold. The shares will start trading ex-bonus on September 15, 2022, and the record date for the issue is September 16, 2022. Bharat Electronics Limited manufactures advanced electronic products for ground and aerospace applications.
G K P Printing and Packaging
The diversified company’s shares will turn ex-bonus on September 16 ahead of its record date on September 19. The company will issue one bonus share having a face value of ₹10 each on two existing equity shares having a face value of ₹10 each fully paid-up, or in the ratio of 1:2.
The company is engaged in the business of liquor, garment exports, retail, steel utensils, pharmaceuticals, playing cards, prints, record management, engineering, confectionery, and the FMCG sector.
Written by Simran Bafna
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
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