Introduction
Like in previous months, investors are eagerly anticipating several bonus shares set to hit the market in June. Companies distribute these bonus shares to their shareholders as a reward for loyalty and investment. Read on to learn about the upcoming bonus shares in June 2024.
What are Bonus Shares?
Bonus shares are additional shares a company distributes to its existing shareholders at no cost. These shares are issued as a reward or incentive to the shareholders, typically in proportion to their current holdings. Unlike dividends, which involve cash payments to shareholders, bonus shares increase the total number of shares outstanding without any cash outflow from the company.
Companies Issuing Bonus Shares in June 2024
Now that you know what bonus shares are, let's see which companies issued them in June.
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Remus Pharmaceuticals Ltd
In June 2024, Remus Pharmaceuticals Ltd is one of the companies announcing bonus share issuances, which has created a buzz among its investors. Scheduled for 6th June, Remus Pharmaceuticals Ltd plans to distribute these bonus shares to its shareholders at a 3:1 ratio.
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This implies that as an investor in the company, you will be entitled to receive three additional shares for every single share you hold, promising a significant boost to your holdings. This move not only reflects the company's commitment to rewarding its investors but also signals confidence in its future prospects.
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Bharat Petroleum Corporation Ltd
Bharat Petroleum Corporation Ltd (BPCL) is a prominent player in India's energy sector and is renowned for contributing to the nation's fuel needs. BPCL has emerged as a critical player in the refining, marketing, and distributing of petroleum products. With a strong presence across the entire hydrocarbon value chain, BPCL operates refineries, pipelines, and marketing infrastructure.
BPCL ensures a seamless supply of fuel to consumers across the country. Committed to innovation and sustainability, BPCL continually invests in research and development to boost its operational efficiency and environmental performance. The company has chosen 22nd June as its bonus share record date in the 1:1 ratio. On this date, the company will also decide the eligibility of shareholders eligible to receive bonus shares.
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Hindustan Petroleum Corporation Ltd
As a leading oil and natural gas company, HPCL has fuelled the nation's growth and development. With a commitment to innovation and sustainability, HPCL continues to be a driving force in meeting the country's energy needs.
The company's strategic initiatives focus on expanding its refining capacity, enhancing distribution networks, and promoting cleaner and greener energy solutions. HPCL's customer-centric approach and dedication to operational excellence have earned it a strong reputation in the market. HPCL will give bonus shares on 21st June in the 1:2 ratio. This is the third time in seven years that the company will issue them. It did it earlier in 2016 (in the 2:1 ratio) and in 2017 (in the 1:2 ratio).
Advantages for Investors
Bonus shares received from the companies mentioned above can help you as an investor in the following ways:
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Increase Your Shareholding
When you receive bonus shares, your total number of shares in the company increases without any additional cost. This means you own a larger portion of the company, which can be beneficial if the company performs well in the future.
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Enhance Potential Returns
With more shares in your portfolio, you can gain more if the company's stock price increases. The company's future dividends will also be higher, as you will receive dividends on the increased number of shares.
Receiving bonus shares can improve the liquidity of your investment. With more shares at your disposal, you can sell a portion of your holdings if needed while maintaining a stake in the company.
Companies that issue bonus shares often gain positive attention in the market, which can lead to an increase in the stock's market value. Investors see the bonus issue as a sign of the company's confidence in its growth prospects.
Wrapping it Up
While receiving bonus shares is a positive for you, as an investor, it's crucial to invest in a company after examining its fundamentals. Investing in a company with strong fundamentals is rewarding, as they can better weather volatility.
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