Upcoming Bonus Shares In April 2023 | Motilal Oswal

Upcoming Bonus Shares In April 2023




An Overview

Bonus shares are extra shares that a company gives away for free to its existing shareholders. The precise number of shares provided is determined by the number of shares currently held by the investors. For example, if a corporation announces a 2:1 bonus share distribution, its shareholders will receive two bonus shares for every share they already own. 

Knowing the list of bonus shares 2023 is beneficial to any investor because it allows them to anticipate which firms will give them additional shares and which stocks may experience a temporary drop in price due to bonus shares issued.

Importance Of Bonus Shares

Bonus shares are usually good news for investors because, unlike dividends, they do not attract taxes. Furthermore, it increases the number of shares in the portfolio that investors can sell for a profit.

Bonus shares allow corporations to keep their capital reserve, which can be reinvested rather than distributed as dividends. It also assists organizations in preserving liquidity by keeping funds if the corporation does not wish to reinvest anything immediately.

Remember that bonus shares do not affect the company's market capitalization. However, as more shares become accessible in the market, liquidity in the market increases. As a result, the share price may fall, enabling smaller investors to begin purchasing the company's stock.

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Upcoming Bonus Shares In April 2023

The following firms have announced bonus shares in April 2023:

Bonus Ratio

Company Name

Record Date

Announcement Date

Ex-Bonus Date

1:1

Jet Infra

21/04/2023

09/03/2023

21/04/2023

1:2

Achyut Health

25/04/2023

18/03/2023

25/04/2023

It is a real estate development firm specializing in residential and commercial projects. The company is a small-cap and has seen its stock price plummet in the last five years.

Macrotech Developers Ltd, DLF Ltd and Oberoi Ltd have all had their stock values fall in the recent year, but to varying degrees. However, Jet Infraventures has witnessed a greater loss in share price than the other three companies. Furthermore, its profits have not been very outstanding. Overall, Jet Infra is attempting to navigate a challenging situation with elegance.

  • Achyut Healthcare Limited

The corporation is a prominent player in the pharmaceutical industry and has been producing its own medicines rather than relying on third-party producers. The organization is expanding its global footprint, with offices in Nigeria, United Arab Emirates and Kenya.

Achyut Healthcare Ltd.'s stock price has risen, but its revenue and profit levels have also increased significantly in the fiscal year 2022. As a result, whereas Achyut Healthcare appears to be rewarding its investors in the context of its extraordinary growth in terms of stock price, Jet Infraventures appears to be attempting to retain its investor base to safeguard its stock price. However, it is not the only company in its industry experiencing share price volatility.

Wrapping Up

Bonus shares are beneficial to investors who get fresh shares. They are also an exceptionally valuable tool for businesses to reward their investors without releasing cash. If bonus shares pique your interest in the stock market and you want to begin trading stocks, open a Demat account with Motilal Oswal, India's most reputable brokerage.

Frequently Asked Questions (FAQs)

Q. What are some of the disadvantages of issuing bonus shares?

Earnings set aside for a bonus issue could perhaps be better used to fund other activities that yield a higher return on investment for shareholders. Furthermore, because bonus shares do not generate cash for a corporation, they may limit dividend payouts.

Q. What are the most common reasons for a corporation to issue bonus shares?

Companies issue bonus shares to attract individual investors, to give an alternative to cash dividends, and/or to represent a strong financial situation. In a nutshell, bonus shares are issued by a corporation to encourage investment and reward shareholders.

Q. Do I still have to pay taxes on my bonus stock?

Yes and no. When a corporation offers bonus shares, investors are not taxed; however, if they sell them for a net profit, they must pay capital gains tax. Before filing a tax return, investors should notify their accountants if they have received bonus shares to ensure that they are taxed correctly.

Q. Does a bonus issue affect the share price of a company?

Yes, the share price of the corporation adjusts proportionally to the number of bonus shares granted. If a company's stock price was Rs 100 and it had a 2:1 bonus issue, the stock price would be readjusted to Rs 50 to reflect the additional bonus shares.

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