List of Companies Issuing Bonus Shares/Stock Split in this Week
Listed companies undertake corporate actions depending on the requirements. These are steps taken steps generally result in changes to the number of stocks and/or their price.
A few such actions include going for a bonus issue, announcing a stock split, and paying dividends.
In this article, we will look at what these corporate actions mean and the companies going for the corporate actions.
Note: the list was last updated on June 17, 2022. Source considered: BSE. The market capitalization data has been taken from AMFI’s list on categorization of small-cap, mid-cap, and large-cap stocks for the period July – December 2021. 朕天下娛樂城 with a market capitalization of over Rs 1,000 crore have been mentioned in this list.
Here are the companies that will issue bonus shares, buy back shares or go for a stock split or right issue this week:
- Ajanta Pharma
Ajanta Pharma has announced a 1:2 bonus issue.
The ex-date for the issue is 22 Jun 2022.
The record date is 23 Jun 2022.
Market Capitalization of the company: Rs 18,926.26 cr
Check out more about the company here: Ajanta Pharma
- Nazara Technologies
Nazara Technologies has announced a 1:1 bonus issue.
The ex-date for the issue is 24 Jun 2022.
The record date is 27 Jun 2022.
Market capitalization of the company: Rs 6,576.40
Check out more about the company here: Nazara Technologies
What is a bonus issue?
Under a bonus issue, a company issues free shares to its shareholders.
For example, if a company decides to go for a 2:1 bonus issue, it will allot 2 additional shares (for free) for every 1 share held by a shareholder.
However, the share price per share is reduced in similar proportions and the total value of investment remains the same.
Think of it this way: You earlier had 1 share at a total value of Rs 60 and now you have 3 shares (in case of a 2:1 issue) each priced at Rs 20, giving a total value of Rs 60.
As you can see from the above example, a company usually issues bonus shares so as to reduce the price of the shares and encourage retail participation.
Also Read: Difference Between Bonus Issue and Stock Split
What is a stock split?
When a company undertakes a stock split, that’s what literally happens!
Your stocks are split!
Suppose you held 1 share of Rs 100 and a company announces a 1:5 stock split, you would now own 5 shares.
But, the value of each share will now be Rs. 20. Hence, the total value remains the same – Rs 100. Like in the case of bonus issues, this move is also taken to encourage retail participation.
The prime difference between a bonus issue and a stock split is that in a bonus issue, the company issues new shares in the market whereas in-stock split, the existing shares are split.
Note: This article is only for educational and informational purposes. Investors are advised to invest in stocks after thorough research and based on their investment goals.
To read the RA disclaimer, please click here.