paragraph

73 companies have announced bonus issues so far in 2022, the second highest since 2010 as Indian companies are looking to reward loyal investors after a good performance post the COVID-19 pandemic, <a target="_blank" href="https://economictimes.indiatimes.com/markets/stocks/news/record-numbers-73-companies-announce-bonus-issues-so-far/articleshow/93040106.cms">Economic Times</a> reported.&nbsp;

Corporate profits surged 48% in FY22, lifting the corporate profit-to-GDP ratio to 4.3% from a low of 2.2% in FY20. Banks, financial services, insurance (BFSI), IT, energy, and metals led the recovery.

Bonus shares are additional shares a company gives free to its existing shareholders based on the number of shares they hold. For instance, a company could give one bonus share for every share held or two bonus shares for every share owned by the investor.

<a target="_blank" href="https://mintgenie.livemint.com/stocks/indian-oil-corp-S0003056">Indian Oil</a>, <a target="_blank" href="https://mintgenie.livemint.com/stocks/varun-beverages-S0003351">Varun Beverages</a>, AU Small Finance Bank, <a target="_blank" href="https://mintgenie.livemint.com/stocks/ajanta-pharma-S0003497">Ajanta Pharma</a>, <a target="_blank" href="https://mintgenie.livemint.com/stocks/nazara-technologies-S0005087">Nazara Technologies</a>, <a target="_blank" href="https://mintgenie.livemint.com/stocks/minda-industries-S0003877">Minda Industries</a>, <a target="_blank" href="https://mintgenie.livemint.com/stocks/torrent-pharmaceuticals-S0003222">Torrent Pharma</a>, <a target="_blank" href="https://mintgenie.livemint.com/stocks/gmm-pfaudler-S0003172">GMM Pfaudler</a>, and <a target="_blank" href="https://mintgenie.livemint.com/stocks/rec-S0003127">REC</a> are among 67 companies that have either issued bonus shares or announced record dates for considering expansion of the equity base through bonus stock. The record date is the cut-off set by the company to compile the list of shareholders eligible for the bonus shares.

Further, six more companies, including <a target="_blank" href="https://mintgenie.livemint.com/stocks/sonata-software-S0003476">Sonata Software</a>, have called board meetings to consider bonus shares, taking the total to 73.

Changes in tax rules from April 1, 2023, to prevent bonus stripping have also encouraged bonus announcements.

Bonus stripping is a common method used by promoters of smaller companies or investors to save capital gains tax. Investors or owners sell shares after a bonus issue when the share price falls. Since the original shares are sold at these lower prices, investors book a lower capital gain or even a loss in some cases, helping save tax. Shareholders then keep the bonus shares issued.

The new tax rules provide that original shares have to be held for a certain minimum period to claim tax benefits from bonus shares.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

73 companies announce bonus issues so far in 2022; the second highest since 2010

Changes in tax rules from April 1, 2023, to prevent bonus stripping have also encouraged bonus announcements. The new tax rules provide that original shares have to be held for a certain minimum period to claim tax benefits from bonus shares.

Rupee falls 7 paise to 79.92 against US dollar in early trade

After $30 Billion Exodus, Global Money Trickles Back Into India

China stocks slip on COVID outbreaks, property woes

Gold Slips as Traders Weigh Growth Concerns, ECB Rate Hike

Elliott wave theory: How does investors’ sentiment impact stock prices?

Automobile sector set to tap economic revival; capex likely to cross $3b in FY23: Report

Rising employee costs hit margins of major IT firms in Q1

Warren Buffett’s Silence on BYD Fuels Trader Theories on Next Move

A 79-Year-Old Tech Pioneer Ashok Soota Aims for His Third Startup IPO

FPIs invest ₹22,452-crore in Indian equities in August; Here's what caused the u-turn

Going forward, foreign fund inflow is expected to improve in the emerging markets on account of fading concerns of rising inflation and tightening of monetary policy by central banks, Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities, said.

Rakesh Jhunjhunwala: The RARE big bull; unabashed wealth creator sans big scam shadow

Rakesh Jhunjhunwala, a partner at RARE Enterprises, who rose to amass a USD 5.8 billion fortune and earn the tag of the country's biggest individual investor, leaves behind a relatively cleaner slate, as was seen in the most common description for him -- 'India's own Warren Buffett'.

High oil prices help Saudi Aramco earn $88 billion in first half

The increase is a boon for the kingdom and the crown prince's spending power as people around the world pay higher gas prices at the pump while energy companies rake in top earnings.

Inflationary impact on FMCG price & margin to continue in Q2, to improve from 2nd half

India at 75: Insure your financial freedom through these insurance plans this Independence Day

Life insurance is a necessary investment to secure one’s future and the family’s future in case of unforeseen circumstances. Here are the best life insurance plans that can be considered to secure one’s future