Long-term investors also benefit from other sources like bonus shares, rights issues, dividends, and buybacks. These are all means for the listed companies to share income with shareholders. Besides capital appreciation of the stock, these also help bolster the portfolio of positional investors. Usually, companies announce these perks on their quarterly report based on their performance.
Five companies have announced bonus shares in September 2022. You must check out this article if you have these company shares in your portfolio.
Let’s begin by understanding: what is a bonus share?
What is a bonus share?
Here is your definition if you are a new investor learning about bonus shares for the first time.
As the name suggests, bonus shares are additional shares given to investors without additional costs. The number of shares a shareholder will receive depends on the number of shares he owns. Bonus shares are companies’ accumulated earnings converted into free shares.
Bonus shares increase the total number of shares and reduce the price per share. Companies announce bonus shares to encourage retail participation and increase the number of individual investors in the company.
Bonus shares are issued as a constant ratio of the number of shares held by individuals.
Suppose you hold 200 shares, and the company announces bonus shares at the ratio of 4:1, meaning one bonus share for every four shares. You will receive a total of fifty bonus shares.
Below are the companies giving bonus shares in September 2022.
Companies giving bonus shares in September 2022
GAIL (India) Ltd
GAIL is a PSU Maharatna which announced bonus issues in the ratio of 1:2 for its shareholders. The record date is decided on September 7, 2022, meaning the shares will trade ex-bonus on September 6, 2022.
It was the fourth occasion when GAIL announced bonus scrips. Earlier, the company released bonus shares in October 2008, March 2017, March 2018, and July 2019.
Before buying GAIL India Ltd stocks, track Gail India Ltd share price on Angel One.
Jyoti Resins & Adhesives
The board of directors of Jyoti Resins & Adhesives has announced bonus shares in the ratio of 2:1 for its shareholders. The record date is decided for September 9, 2022. Shareholders will receive two bonus shares for each share they hold.
It is the first occasion for the company to announce bonus shares.
Follow Jyoti Resins & Adhesives share price on Angel One.
The record date for receiving Ruby Mill’s bonus shares is fixed at September 23, 2022. Shareholders will get one bonus share for each share they hold, meaning if you own 1000 shares of Ruby Mills, you’ll receive 1000 bonus shares. The shares will trade ex-bonus on September 22, 2022.
Earlier, the company had announced bonus scrips in 2015.
Get live updates on Ruby Mills share price on Angel One’s website.
Ram Ratna Wires
The company announces 1:1 bonus issues for existing shareholders. It is the first time the company has announced bonus shares. The record date is September 29, 2022, meaning its stocks will trade ex-bonus on September 28, 2022.
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Pondy Oxides & Chemicals
Shareholders will receive bonus issues in a 1:1 ratio.
Pondy Oxides & Chemicals had issued bonus scrips after fifteen years after 2007. The record date is announced on September 29, 2022, meaning the ex-bonus date is September 28, 2022.
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What is a record date?
The record date for bonus scrips is the cut-off date decided by the company for declaring eligibility. All investors with company shares in their Demat accounts qualify for bonus shares on the record date.
What is ex-date?
The ex-date refers to one day before the record date. To receive bonus shares, investors must buy the shares at least one day before the ex-date.
Companies issue bonus shares from their profit reserves. It helps build the trust of an investor in the company’s business. Investors don’t need to pay for bonus shares, but it increases the number of outstanding shares of an investor.
Add these company stocks to your portfolio and enjoy the benefit of bonus shares. Open a Demat account with Angel One and start investing in a range of asset classes.