Bonus Shares in March 2023

Bonus shares are free, additional shares that companies give to the existing shareholders based on the shares currently held by them. For example, if company ABC announces 2:1 bonus shares, its shareholders will receive two bonus shares for each share they have. 

There are a few reasons why companies issue bonus shares. But it usually is positive news for the investors, who are tired of paying dividend taxes. Bonus shares don’t attract taxes. Moreover, it increases the number of shares in the portfolio, which the investors can trade to realise a profit.     

For companies, bonus shares help them retain their capital reserve, which can be reinvested. Secondly, when a company lacks cash excess, it can issue bonus shares to preserve liquidity. 

It is important to note that bonus shares don’t impact the company’s market capitalisation value. But liquidity in the market increases as more shares become available. As a result, the share price will decline, encouraging retail participation from smaller investors.

Companies issuing bonus shares in March 2023

These are the companies announcing bonus shares in 2023.

Astral Ltd.

Astral Ltd. and its subsidiaries manufacture and trade pipes, fittings, and adhesives. Their product range includes plumbing pipes and fittings, insulation tubes, industrial pipes and fittings, sewerage pipes, etc. The large-cap company announced 1:3 bonus shares for investors.

% change in share price in past 12 months – (-0.83%)

P/E Ratio (TTM) – 97.74

Industry P/E – NA

Market Cap – ₹38,414 cr

Profit in 2022 – ₹484 crore

Rhetan TMT

The Indian-based TMT company manufactures and supplies thermo-mechanically treated (TMT) bars and round bars. Their products are used in constructing dams, bridges, and residential and commercial properties. 

The company has announced a bonus of 11:4 for its investors. On the financial front, the details are given below.

% change in share price in past 12 months – +631.43%

P/E Ratio (TTM) – NA

Industry P/E – 11.61

Market Cap – ₹ 1,068 cr

Profit in 2022 – NA

ASCOM

ASCOM Leasing and Investments has announced bonus shares that will trade ex-bonus from March 3, 2023. 

The company is in the lending business providing loans against properties, pre-owned car financing, personal loans, home renovation and gold loans. The financial details of the company are recorded below.

% change in share price in past 12 months – +922.21%

P/E Ratio (TTM) – NA

Industry P/E – NA

Market Cap – ₹ 1,894 cr

Profit in 2022- ₹3.45 crore

Captain Pipes 

They offer a diversified product portfolio in pipe manufacturing and selling. Their products are used in various sectors, including agriculture, plumbing, and drainage. 

The company has announced bonus shares of 2:1, available at an ex-bonus rate from March 3, 2023. If you want to add the shares to your portfolio, find the key financials below. 

% change in share price in past 12 months – +781.93%

P/E Ratio (TTM) – 64.00

Industry P/E – NA

Market Cap – ₹ 328 cr

Profit in 2022- ₹5.13 crore

360 One WAM

The company was formerly known as IIFL Wealth Management Ltd. They offer wealth and asset management, including financial asset distribution, broking, lending, credit, investment solutions, and asset and portfolio management.    

The company’s financial highlights are the following. 

% change in share price in past 12 months – +19.16%

P/E Ratio (TTM) – 23.92

Industry P/E – 20.33

Market Cap – ₹ 15,705 cr

Profit in 2022 – ₹578 crore

Jayant Infra

Jayant Infra is a unique company that provides overhead electrification (OHE) service to the southeastern and northern railway, and large corporations in Chhattisgarh. The company offers services in the design, drawing, supply, erection, and commissioning of high-voltage single-phase traction equipment.

% change in share price in past 12 months – +19.16%

P/E Ratio (TTM) – 59.64

Industry P/E – 9.37

Market Cap – ₹ 116 cr

Profit in 2022 – ₹ 2.40 crore

Pulz Electronics 

The company produces audio systems used in the cinema, pro-audio, studio, and home audio industries. They manufacture audio systems to offer perfect sound for different auditorium shapes and sizes. 

They offer a variety of sound systems under different product categories.  

% change in share price in past 12 months – +268.54%

P/E Ratio (TTM) – NA

Industry P/E – 21.93

Market Cap – ₹ 63 cr

Profit in 2022 – NA

Final words

If you want to invest in any of these companies but don’t have a Demat account, open an demat account with Angel One – the most trusted brokerage of Indian investors.  

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