Nine firms have declared bonus issues for September. Bonus shares are basically additional shares issued by a company to its pre-existing shareholders. These are fully paid shares and the shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.
This is mostly done to increase the liquidity of the stock. When the price of a share is high, a number of retail investors may find it difficult to buy that share. By issuing bonus shares, the total number of shares of the firm increases, thus reducing its stock price and making it accessible to more investors. With more shares in the market at a low price, the liquidity and investor engagement of the shares improve considerably.
The record date for bonus scrips is the cut-off date decided by the company for declaring eligibility. All investors with company shares before the record date in their Demat accounts qualify for bonus shares. The ex-date refers to one day before the record date. To receive bonus shares, investors must buy the shares at least one day before the ex-date. Turning ex-bonus refers to the ex-date of a firm's bonus issue.
Let's take a look at the companies that have declared bonus issues for September:
Bajaj Finserv: The NBFC firm announced bonus share issuance in the ratio of 1:1 and turns ex-bonus today. This means anyone who bought the stock today will not get the advantages of a bonus issue. The 1:1 ratio means that for every 1 share a shareholder holds, he/she will get 1 bonus share. The firm has also announced a stock split from the face value of ₹5 to the revised face value of ₹1 and turns ex-split today. The stock rose nearly 70 percent in 2022 before the split.
Jyoti Resins & Adhesives: The firm has announced bonus shares in the ratio of 2:1 for its shareholders. The record date was decided for September 9, 2022, hence the shares turned ex-bonus on September 8, 2022. Shareholders will receive two bonus shares for each share they hold. The stock has surged 350 percent in 2022 so far.
Ruby Mills: The firm has announced a bonus issue in the ratio of 1:1. The record date for receiving Ruby Mill’s bonus shares is fixed at September 23, 2022. Shareholders will get one bonus share for each share they hold. The shares will trade ex-bonus on September 22, 2022. It has advanced 166 percent in 2022 so far.
Ram Ratna Wires: The company has announced 1:1 bonus issues for existing shareholders. It is the first time the company has announced bonus shares. The record date is September 29, 2022, meaning its stocks will trade ex-bonus on September 28, 2022. It has soared 191 percent in 2022 so far.
Pondy Oxides & Chemicals: Shareholders will receive bonus issues in a 1:1 ratio. This is the first bonus share issued by the firm after fifteen years after 2007. The record date is announced on September 29, 2022, meaning the ex-bonus date is September 28, 2022. The stock has jumped 194 percent in 2022 so far.
Bharat Gears: The firm has announced a bonus issue in the ratio of 1:2. This means for every 2 shares held, shareholders will get 1 bonus share. The record date for the same has been set on September 28, hence the share will trade ex-bonus from September 27, 2022. The stock has risen around 40 percent in 2022 so far.
AAA Tech: The company has announced bonus shares in the ratio of 1:2. This means the company will issue 1 bonus equity share on 2 existing bonus shares fully paid up. Its shares will turn ex-bonus on September 13 ahead of its record date on September 14. The stock has jumped 140 percent in 2022 so far.
Bharat Electronics: Government-owned Bharat Electronics has declared a bonus issue of equity shares in the ratio of 2:1. An investor will receive two bonus equity shares for every one equity share held in the company. The firm will turn ex-bonus on September 15 ahead of its record date September 16. The stock has risen 61 percent in 2022 so far.
GKP Printing & Packaging: The company has announced a bonus issue in the ratio of 1:2. This means, that the company will issue one bonus share on two existing equity shares. The company's stocks will turn ex-bonus on September 16 ahead of its record date on September 19.
Already turned ex-bonus
Sonata Software: The firm has announced a bonus issue in the ratio of 1L3, which means that for every 3 shares held, shareholders will get 1 bonus share. The record date for the same was decided for September 7, hence the stock turned ex-bonus on September 6.
GAIL: The PSU Maharatna has announced bonus issues in the ratio of 1:2 for its shareholders. The record date was decided on September 7, 2022, meaning the shares turned ex-bonus on September 6, 2022. Shareholders will receive one bonus share for every 2 shares they hold. The stock has risen 7.5 percent in 2022.
