Bonus Shares in April 2023

Bonus shares are additional shares that companies give out for free to their existing shareholders. The exact number of shares given depends  on the number of shares currently held by the investors. For example, if a company announces 3:1 bonus shares, its shareholders will receive three bonus shares for each share that they hold already. 

Knowing the list of bonus shares 2023 is good for any investor as it helps them know beforehand which companies will give them additional shares and which stocks may see a temporary dip in their prices due to bonus shares issued.

Benefits of bonus shares

Bonus shares are usually positive news for investors, as unlike dividends, the receipt of bonus shares doesn’t attract taxes. Moreover, it increases the number of shares in the portfolio, which the investors can sell to gain a profit.

On the other hand, for companies, bonus shares help them retain their capital reserve which can be reinvested, instead of giving it out as dividends. It also helps the companies to preserve liquidity by retaining cash, in case the company does not want to reinvest anything right away.

Remember that bonus shares do not impact the company’s market capitalisation at all. However, liquidity in the market does increase as there are more shares available now in the market. Consequently, the share price may decline, encouraging smaller investors to start buying the shares of the company.

List of companies giving bonus shares in April 2023

The following are the companies that have announced bonus shares in April 2023:

Achyut Healthcare Ltd.

The company is a major player in the pharmaceuticals business and has been manufacturing its own products instead of buying from third party manufacturers. The company has an increasingly global presence, including in the UAE, Nigeria and Kenya.

Financials 

1. PE Ratio: 51.10
2. EV to Sales: 12.55
3. 1-year change in stock price: 171.50%
4. Market Cap: Rs. 51 crore

Jet Infraventure Ltd

It is a real estate development company that is focused on commercial and residential projects. The company is small-cap and has seen an unfortunate drop in its stock price in the last 5 years.

Financials

1. PE Ratio: 6.01
2. EV to Sales: 6.17
3. 1-year change in stock price: -51.45%
4. Market Cap: Rs. 6 crore

Achyut Healthcare Ltd. has not only seen a surge in its stock price but also achieved a robust increase in its revenue and profit levels in FY 2022. Therefore, it seems that while Achyut Healthcare is probably rewarding its investors in the context of its phenomenal growth in terms of stock price, Jet Infraventures is trying to retain its investor base in order to protect its stock price. That being said, it is not the only one in its sector having trouble with the share price.

DLF Ltd, Macrotech Developers Ltd, Oberoi Ltd have seen their stock prices drop in the last 12 months, albeit by different degrees. However, the drop experienced by Jet Infraventures has been higher than the drops in share price experienced by these three. Moreover, its profits have not been very impressive either. Overall, it is a difficult period that Jet Infra is trying to push through with grace.

Final words

Bonus shares are good news for investors who get new shares. They are also an extremely useful tool for companies to reward their investors without letting go of their cash. If bonus shares makes you interested in the stock market and you want to start trading in stocks, open a Demat account with Angel One, India’s trusted stockbroker.

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.