Introduction:
As we step into March 2024, the Indian stock market landscape is buzzing with anticipation as several companies gear up to reward their shareholders with bonus shares. Bonus shares are a way for companies to share their success with investors. When you invest in a company offering bonus shares before the record date, you receive additional shares without making any fresh investment.
In this article, you will delve into the significance of bonus shares and learn about the companies expected to offer bonus shares to their shareholders in March 2024.
Understanding bonus shares
Bonus shares, also known as scrip dividends, refer to a corporate action wherein companies distribute additional shares to their shareholders free of cost. It means that shareholders receive additional shares in proportion to their existing holdings without paying anything. For example, suppose you are holding 100 shares of a company, and it announces bonus shares for its shareholders in the ratio 2:1. In that case, you will receive two additional shares for every share you hold, i.e., 200 additional shares without any investment.
While bonus shares do not result in an immediate cash inflow for investors, they have several benefits. Companies typically issue bonus shares as a way to utilise accumulated reserves, improve liquidity in the market, and enhance shareholder value. From an investor's perspective, bonus shares increase the total number of shares in circulation but do not dilute the ownership stake of individual shareholders. Bonus shares are an attractive proposition for investors looking to capitalise on the long-term growth potential of a company.
Upcoming bonus shares in March 2024 in India
As of 28 February 2024, two companies have announced bonus shares for their shareholders in March 2024, and a few others may follow suit. These companies include Capri Global Capital Limited and Paisalo Digital Limited. Read to learn more about these companies and the details of bonus shares.
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Capri Global Capital Limited
Capri Global Capital Limited (CGCL) is a Non-Banking Financial Company (NBFC) listed on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE). It was incorporated on 15 November 1994 as a private limited company in West Bengal. CGCL offers a range of financial services, including construction finance loans, housing loans, gold loans, and MSME (micro, small, and medium-sized enterprises) loans. The company also offers financial advisory and investment banking services.
As of 28 February 2024, CGCL’s shares were trading for Rs. 971.50 per share at the NSE and Rs. 970.00 per share at the BSE. The company’s market capitalisation stood at Rs. 20,004 crores. On 23 February 2024, the company’s Board of Directors announced bonus shares for its shareholders in the ratio of 1:1. They have set the record date for the issuance of bonus shares as 5 March 2024. You can buy CGCL shares before the record date to receive one bonus share for every share you purchase.
Paisalo Digital Limited is an Indian NBFC dedicated to providing inclusive financial solutions to the underserved and unbanked sectors of the Indian population. Specialising in the microfinance sector, the company delivers a range of financial products and services designed to address the requirements of individuals and small businesses that typically lack access to banking and financial services. Paisalo Digital Ltd.'s primary product portfolio comprises personal loans, business loans, and loans against properties. Additionally, the company offers services such as motor vehicle leasing, fixed deposits, etc.
As of 28 February 2024, the shares of Paisalo Digital Limited were available for Rs. 158.85 per share at the NSE and Rs. 158.75 per share at the BSE. The company’s market capitalisation stood at Rs. 7,128 crores. On 16 February 2024, the company’s Board of Directors announced issuing bonus shares for the shareholders in the ratio of 1:1. The company has set the record date for this corporate action as 20 March 2024.
To conclude
Apart from the two companies mentioned above, several more are anticipated to make official announcements for issuing bonus shares in March 2024. As an investor, you must stay informed of the latest updates and conduct thorough research before making any investment decisions. With Motilal Oswal, you can open a free Demat account and invest seamlessly.
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