Bonus share bonanza: These stocks are issuing bonus shares in February 2024

A bonus issue is a corporate activity wherein a business gives its present shareholders extra shares based on their current shareholdings at no additional cost. The amount of bonus shares that a shareholder receives depends on how many shares they currently possess.

Usually, the goal of the bonus issue is to capitalise on the company’s reserves or earnings by issuing bonus shares. Through the conversion of accumulated reserves or retained earnings into extra shares, the company’s share capital increases without compromising its overall financial situation or cash reserves.

Bonus shares are awarded to the company’s shareholders without requiring them to make any further payments. As a dividend, the bonus shares are distributed as shares rather than cash.

List of Bonus Issues in February 2024

DRC Systems India Ltd has announced a bonus issue with a record date and ex-date both set for February 27, 2024. The bonus ratio is 2:1, indicating that shareholders will receive two additional shares for every share they hold. As of now, the Current Market Price (CMP) is Rs 58.

Shreeji Translogistics Ltd is set to implement a bonus issue on February 8, 2024, with both the bonus record date and ex-date aligned. The bonus ratio for this company is 1:3, meaning shareholders will be granted one additional share for every three shares held. The current market price (CMP) stands at Rs 51.70.

Akshar Spintex Ltd is conducting a bonus issue on February 8, 2024, with a bonus ratio of 1:5. Shareholders will be entitled to one extra share for every five shares they possess. The current market price (CMP) for Akshar Spintex Ltd. is Rs 4.78.

Maagh Advertising and Marketing Services Ltd has scheduled its bonus record date and ex-date for February 5, 2024. The bonus ratio for this company is 1:4, indicating that shareholders will receive one additional share for every four shares held. As of now, the Current Market Price (CMP) is Rs 169.35.

Sandur Manganese & Iron Ores Ltd has declared a substantial bonus issue with a bonus ratio of 5:1. The bonus record date and ex-date are both set for February 2, 2024. Shareholders will be granted five additional shares for every one share they currently hold. The Current Market Price (CMP) is Rs 3,382.

Salasar Techno Engineering Ltd is implementing a bonus issue with both the bonus record date and ex-date set for February 1, 2024. The bonus ratio for this company is 4:1, meaning shareholders will receive four additional shares for every one share they hold. The current market price (CMP) stands at Rs 130.52.

Advantages of Bonus Issue

• A bonus issue’s main advantage is that it allows investors to hold more shares without having to make further financial commitments.
• Bonus concerns have the potential to increase a company’s share price’s marketability. Increased trading activity may result from having more shares available for trade, which could make it simpler for investors to buy or sell shares.
• Bonus shares can make a company more appealing to prospective investors, who view the rise in shares as a good thing. This can result in a rise in interest in the company’s stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.