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Bonus Shares in May 2023

05 May 20234 mins read by Angel One
Companies issue free bonus shares to reward their investors. Find out which companies are releasing bonus shares in May 2023.
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Companies issue bonus shares to their existing shareholders from their reserves or earnings. It is usually good news as it increases the total number of shares in the investor’s portfolio. The exact number of bonus shares issued to investors depends on their holdings. For example, the company may issue bonus shares at a ratio of 3:1, implying that investors will receive three additional shares for each share in their portfolio.

Bonus shares increase the number of shares in the investor’s portfolio, which they can trade to make a profit. These are distributed free of charge and don’t attract taxes like dividends.

Bonus shares improve liquidity in the market by increasing the supply of additional shares. Moreover, it allows the companies to retain their cash reserves and reinvest them for higher returns. Let’s now see which companies have announced bonus shares for May 2023.

Here‘s the listing of upcoming bonus stocks in May 2023.

Company name Bonus ratio Announcement date  Record date Ex-bonus date
Sirca Paints 1:1 March 29, 2023 May 11, 2023 May 11, 2023
Varanium Cloud Ltd. 1:1 March 20, 2023 May 09, 2023 May 09, 2023
SRU Steel Ltd. 1:2 March 10, 2023 May 03, 2023 May 03, 2023

Sirca Paints India Ltd.

The company manufactures wood paints and other decorative paints. In the last 5 years, the shares have grown by 203.24%.

Sirca Paints is a small-cap company with a market capitalisation of Rs. 1,665 crore. Its product range includes stains, acrylic, polyurethane coatings, wall paints, ultraviolet products, etc. The shares of Sirca Paints have a PE ratio of 38.92 and a PB ratio of 7.40, compared to a sector PE of 13.89 and a PB ratio of 2.61%.

Varanium Cloud Ltd.

Varanium Cloud Ltd., an India-based technology company, provides audio and video streaming content to various content owners and telecom service providers. The small-cap (market capitalisation of Rs. 830 crore) stocks have generated 575.11% returns in the last 5 years.

The stocks have a PE ratio of 9.72 and a PB ratio of 54.95.

SRU Steel Ltd.

SRU Steel Ltd. trades in various types of steel and steel products. The company has announced bonus shares in a 2:1 ratio for May 2023. It deals in all kinds of steel varieties, such as stainless steel, mild steel, and carbon iron steel. In the last 5 years, the company’s stocks have earned returns of 104.68%.

SRU Steel is a small-cap company with a market capitalisation of Rs. 28 crore. Its shares have a PE ratio of 105.70 and a PB ratio of 2.25.

The bottom line 

Bonus shares increase the supply of a company’s stocks in the market and attract more new investors. It doesn’t impact the company’s cash reserve, as they can avoid paying dividends. If bonus shares have you interested in stock investment, get your demat account opened with Angel One – one of the top stock brokers in India.

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