June 2023 is here, and as usual, investors are on the lookout for opportunities to enhance their returns. One avenue that holds immense potential is bonus shares. In this article, let’s look into the bonus shares in June 2023 along with the benefits of bonus shares for an investor.
What are Bonus Shares?
Before finding out the companies offering bonus shares in 2023, let’s understand what bonus shares are. In simple terms, bonus shares are a way for companies to give something extra to their shareholders. It’s like receiving a gift from the company you’ve invested in. For example, if a company announces 4:1 bonus shares, it means that shareholders will get four bonus shares for each share that they already hold.
List of Companies Giving Bonus Shares in June 2023
The following are the companies that have announced bonus shares in June 2023:
|Name of the company||Bonus ratio||Announcement Date||Record date||Ex-bonus date|
Indiamart Intermesh is an online B2B marketplace connecting suppliers and businesses. Indiamart is one of the largest online B2B marketplaces in India. According to the KPMG report, in FY 2017, it has around 60% market share in the online B2B classifieds space in India. The market cap of Indiamart Intermesh is Rs. 16,855 crore and the P/E ratio is 59.39.
The bonus ratio of Indiamart Intermesh is 1:1, which means the company will offer 1 share for every 1 share you hold.
Hardwyn is a multiproduct trading and distribution company dealing in a wide range of aluminium products and textile products. It is a small-cap company founded in 2017. The market cap of Hardwyn is Rs. 1,082.37 crore and the P/E ratio is 119.18.
The bonus ratio of Hardwyn is 1:3, which means the company will offer 1 share for every 3 shares you hold.
Advantages of Bonus Shares for Investors
- Investors typically face a tax burden of 30% on dividends. However, bonus shares present a more advantageous scenario as they are not subject to taxes. It’s worth noting that selling bonus shares will incur capital gain taxes at rates of 15% for short-term gains and 10% for long-term gains, but only if the amount exceeds Rs. 1 lakh.
- For long-term investors, bonus shares offer multiple benefits, including higher dividends and capital appreciation. This means that your earnings from dividend payments may see an increase.
- Bonus shares enhance the accessibility and affordability of a stock. By issuing bonus shares, the total number of outstanding shares in the market increases, leading to improved liquidity. Additionally, the provision of more shares reduces the share price, making them more affordable to investors.
Understanding the working and benefits of bonus shares will help you decide whether you want to add these companies to your portfolio or not.
Typically, it takes around 15 days from the record date for bonus shares to be credited to investors’ accounts. As the process is digitalised, investors will receive these shares directly in their accounts. To participate in bonus issues, owning a Demat account is mandatory as it allows investors to purchase shares in the market and ensure smooth transactions. Open a Demat Account now for free on Angel One and experience hassle-free investing.