Who Is Eligible For BSE’s Bonus Shares?

BSE Ltd.’s board of directors has recommended a bonus issue of shares. Shareholders will receive two free shares for every one share they currently hold. The announcement was made on Sunday, March 30.

Eligibility for Bonus Shares

Only investors who buy BSE Ltd. stock before the ex-date will be eligible for the bonus shares. Investors who purchase the shares on or after the ex-date will not receive the bonus shares.

Past BSE’s Bonus Issues

This is the second time BSE has issued bonus shares since its listing in 2017. BSE, Asia’s oldest stock exchange, previously issued bonus shares in 2022. At that time, shareholders received two bonus shares for every one share held (2:1). As of now, the record date for the bonus issue is yet to be determined.

Purpose of Bonus Shares

Companies issue bonus shares for several reasons. They use them to capitalise free reserves. Bonus shares also increase Earnings Per Share (EPS) and paid-up capital. Additionally, they reduce the company’s reserves, which distinguishes them from stock splits.

Shareholders receive bonus shares at no additional cost. For this reason, they are also referred to as free shares.

BSE’s Financial Actions

Since its listing, BSE Ltd. has returned value to its shareholders through various means. The company has paid dividends totaling over ₹170 per share. BSE Ltd. has also conducted buybacks of its equity shares. These buybacks occurred once in 2019 and again in 2023.

BSE Share Price Performance

On Friday, BSE share price closed 16.09% higher, at ₹5,438. The stock’s performance in 2025 has been flat.

Conclusion

BSE Ltd. announced a 2:1 bonus share issue, its second since listing. This rewards shareholders and adjusts capital structure. The company has also returned value via dividends and buybacks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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