There are several ways companies reward shareholders. You either receive a dividend or a bonus share. Bonus shares are additional shares allotted to you without any extra cost. They also call it 'stock dividend' in other markets. The company will allot them in a specific ratio.
For example, say a company announces 1:2 bonus shares. It means you receive one bonus share for every two shares you hold. So, if you are holding 200 shares of this company, you will get 100 bonus shares; hence, your total holding will increase to 300. However, you must hold the required quantity by the record date to receive these bonus shares.
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Kansai Nerolac Paints Ltd. is engaged in the business of manufacturing paints and coatings. It also produces a range of chemicals for automobile manufacturers, including pre-treatment chemicals, electro-deposition primers, metallic top coats, intermediate coats, and touch-up paints. The company's manufacturing plants are in Maharashtra, Tamil Nadu, Uttar Pradesh, and Haryana.
As of 28th June 2023, the market capitalization of Kansai Nerolac Paints Ltd. stood at Rs. 24,625 crores. For FY 2022-23, the company's revenues stood at Rs. 7,542 crores with a net profit of Rs. 468 crores. It announced a bonus share of 1:2 on 8th May 2023 and has set the record date as 4th July 2023 for the issue of these shares.
Bhansali Engineers Polymers Ltd. is one of the top companies in the Indian petrochemical sector. It manufactures and distributes Acrylonitrile Butadiene Styrene (ABS) – a chemical used across industries including automobile, electronics, telecommunications, luggage, and others. The company's top clients include Bajaj, Exide, Fiat, VIP, Samsonite, Aquaguard, Voltas, Whirlpool, LG, TATA, and IFB.
As of 28th June 2023, the market capitalization of Bhansali Engineering Polymers stood at Rs. 2,227 crores. Its FY 2022-23 revenues were Rs. 1,362 crores with a net profit of Rs. 135 crores. It announced a bonus share of 1:2 on 21st May 2023, and the record date for the issue of shares has been set as 5th July 2023.
Roto Pumps Ltd. is engaged in the manufacturing of vital components and complete pumps used in the mining industry. The company's product portfolio includes Progressive Cavity Pumps, Twin Screw Pumps, Dry Running Protection Devices, Pressure Switches and Gauges, Relief Valves, and Strainers.
As of 28th June 2023, the market capitalization of Roto Pumps Ltd. stood at Rs. 1,180 crores. The company's FY 2022-23 revenues were Rs. 225 crores, with a net profit of Rs. 33 crores. The directorial board has proposed a bonus share of 1:1 on 23rd May 2023 and has set the record date as 8th July 2023 for the issue of these shares.
Aptech Limited is among the top upcoming bonus shares in July. It is a pioneer in India's non-formal vocational training and education business. The company also boasts a significant global presence. Career and professional training are provided through Aptech Computer Education, Arena Animation, and Maya Academy of Advanced Cinematics.
As of 28th June 2023, the market capitalization of Aptech Ltd. stood at Rs. 2,107 crores. The company's FY 2022-23 revenues stood at Rs. 456 crores with a net profit of Rs. 67 crores. On 24th May 2023, the company announced a bonus share of 2:5, with the record date for the issue of shares being set as 14th July 2023. The company's shares have delivered multi-bagger returns for their investors.
Leading Leasing Finance and Investment Company Ltd. are among India's top non-banking financial companies (NBFCs). It offers leasing and investment services for its clients. The product portfolio comprises fixed deposits, mutual funds, etc.
As of 28th June 2023, the shares of this company were trading at Rs. 6.53 per share on the Bombay Stock Exchange (BSE). On 30th May 2023, the company announced a bonus share of 1:1, with the record date set as 20th July 2023 for the issue of these shares. For FY 2022-23, the company generated a revenue of Rs. 3 crores.
Investing in these upcoming bonus shares in July 2023 is a lucrative proposition. It allows you to increase the number of your shares without changing your ownership pattern. However, you must consider factors such as a company's financials, growth prospects, and prevailing market conditions before making any investment decision.