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Bonus Shares in January 2023

04 January 20236 mins read by Angel One
Bonus shares are good news for investors who are tired of paying high taxes on your income from dividends.They are useful for companies willing to pay dividends but unable to find the required cash.
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What is bonus share

Bonus shares are free shares given to the existing shareholders. For example, if a company declares bonus shares at a ratio of 1:2, that means shareholders will get one bonus share for every 2 shares held by them already. In other words, a person holding 200 shares will receive 100 bonus shares for free and thus have 300 shares in total. 

List of companies giving bonus shares 2023

Name of the company Bonus Ratio Announcement Date Record Date Ex Bonus Date
KPI Green 1:1 30/11/2022 18/01/2023 18/01/2023
Rama Steel Tube 4:1 18/11/2022 06/01/2023 06/01/2023
Globe Commercials 1:1 14/12/2022 07/01/2023 06/01/2023
GM Polyplast 6:1 14/11/2022 04/01/2023 04/01/2023
Secur Credentials 3:1 14/11/2022 04/01/2023 04/01/2023

KPI Green 

It is an India-based solar power generating company with the brand name Solarism. It has two primary segments as an Independent Power Producer (IPP) and as a Captive Power Producer (CPP).

% change in share price in past 12 months – +173.61%

P/E Ratio (TTM) – 24.58

Industry P/E – 17.04

Market Cap – ₹ 1,632 cr

Profit – ₹ 43.25 cr (a massive jump from ₹ 14.35 cr last year)

Rama Steel Tube

It is an India-based company engaged in the manufacturing and export of steel pipes, including electric resistance weld steel tubes, tubes with anti-rust oil coating and related products such as scaffold, glaze, galvanic agro, light poles etc.Its products are used in various industries such as automobiles, infrastructure, real estate and furnitures.

% change in share price in past 12 months – +157.14%

P/E Ratio (TTM) – 64.96

Industry P/E – 10.31

Market Cap – ₹ 1,610 cr

Profit – ₹ 27.32 cr (a massive jump from ₹ 12.38 cr last year)

Globe Commercials

Unfortunately, very little information is available on this particular company.

% change in share price in past 12 months – +171.13%

P/E Ratio (TTM) – _

Industry P/E – _

Market Cap – ₹ 17 cr

Profit – _

GM Polyplast

It is an India-based company producing high grade sheets and granules. Its products include high grade polystyrene sheets (HIPS), polyethylene terephthalate (PET) sheets etc. 

% change in share price in past 12 months – +636.34%

P/E Ratio (TTM) – 47.91

Industry P/E – 12.99

Market Cap – ₹ 238 cr

Profit – ₹ 4.13 cr

SecUR Credentials

It is an India-based employee background check company for clients in both India and abroad. This service includes verifications, EduCred (for verification of educational documents), checking employees’ other businesses, family profiles etc.

% change in share price in past 12 months – +353.02%

P/E Ratio (TTM) – 25.56

Industry P/E – NA

Market Cap – ₹ 126 cr

Profit – ₹ 2.05 cr

Benefits of bonus shares

Bonus shares are an extremely useful tool for cash-starving companies trying to expand. It also saves tax money for investors. The following points show how bonus shares should be considered by a company:

  1. Issuing bonus shares is an activity done on a non-cash basis i.e. the company does not have to use any of its cash reserves in order to create this value. Therefore, it allows the company to retain its liquidity.
  2. Whenever bonus shares are issued, the total number of shares increases but the market value of the company remains the same – therefore the price of each share decreases, allowing smaller investors to also buy the shares of the company. This is, however, bad news for existing shareholders.
  3. It is also useful in saving taxes for investors. Had the company paid dividends instead of bonus shares, the shareholders would have had to pay taxes. Now if the investor comes under the tax bracket of, say, 30% then for every Rs 100 gain, the investor would have to pay Rs 30 tax. But if the investor gets a share worth Rs 100 and the investor sells it in the market then the applicable tax rate will be only 15% (if short-term capital gains tax) or 10% (if long-term capital gains tax).

Final words

Now that you know the list of companies giving bonus shares 2023, you may consider buying one of them or any other stock of your choice. If you have never traded stocks before, open demat account today, with India’s trusted online stockbroker.

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

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