Upcoming Bonus Shares in July 2024

A bonus issue is a corporate activity wherein a business gives its present shareholders extra shares based on their current shareholdings at no additional cost. The amount of bonus shares that a shareholder receives depends on how many shares they currently possess.

Usually, the goal of the bonus issue is to capitalise on the company’s reserves or earnings by issuing bonus shares. Through the conversion of accumulated reserves or retained earnings into extra shares, the company’s share capital increases without compromising its overall financial situation or cash reserves.

Bonus shares are awarded to the company’s shareholders without requiring them to make any further payments. As a dividend, the bonus shares are distributed as shares rather than cash.

List of Bonus Issues in July 2024

Source: BSE

Oil India Ltd has announced a bonus issue with a record date and ex-date both set for July 02, 2024. The bonus ratio is 1:2, indicating that shareholders will receive one additional shares for every two shares they hold. As of now, the Current Market Price (CMP) is 705.

GPT Infraprojects Ltd is set to implement a bonus issue on July 03, 2024, with both the bonus record date and ex-date aligned. The bonus ratio for this company is 1:1, meaning shareholders will be granted one additional share for each share held. The current market price (CMP) stands at 268.

EIH Associated Hotels Ltd is conducting a bonus issue on July 29, 2024, with a bonus ratio of 1:1. Shareholders will be entitled to one extra share for each share they possess. The current market price (CMP) for EIH Associated Hotels Ltd is 919.

Remedium Lifecare Ltd has scheduled its bonus record date and ex-date for July 6, 2024 and July 5, 2024 respectively. The bonus ratio for this company is 3:1, indicating that shareholders will receive three additional shares for each one share held. As of now, the Current Market Price (CMP) is 61.

Advantages of Bonus Issue

• A bonus issue’s main advantage is that it allows investors to hold more shares without having to make further financial commitments.
• Bonus concerns have the potential to increase a company’s share price’s marketability. Increased trading activity may result from having more shares available for trade, which could make it simpler for investors to buy or sell shares.
• Bonus shares can make a company more appealing to prospective investors, who view the rise in shares as a good thing. This can result in a rise in interest in the company’s stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.