When a company makes an unanticipated profit during a financial year or a quarter, it distributes it to its shareholders as a dividend. But sometimes, companies cannot pay dividends despite earning good profits. It may happen due to cashflow shortage or any other internal reason.
In such a situation, the company issues additional shares to its shareholders without asking for any money from them. These shares are known as the bonus shares. They are given to a company’s existing shareholders in a fixed ratio based on the shares they already hold.
Start Investing with Free Expert Advice!
For example, suppose a company announces a 1:2 bonus share; its existing shareholders will receive one bonus share for every two shares they hold. So, if you hold 2,000 shares of such a company, you will receive 4,000 additional shares after the record date.
Investing in a company that has announced bonus shares allows you to receive additional shares without incurring any extra cost. Subsequently, bonus shares increase your stake in a company and make you eligible to receive higher dividends in the future. The issue of bonus shares also increases the number of outstanding shares of a company, thereby enhancing the liquidity in its stocks.
What’s more? You are not required to pay any tax for receiving bonus shares as they do not add to your direct income. As a long-term investor, you can get amplified returns without increasing your investment amount.
If you’re looking to invest in the upcoming bonus shares in September 2023 in India, here’s the list:
GNA Axles Limited is engaged in the manufacturing of automotive transmission components. Its products are used for commercial vehicles, off-highway vehicles, and non-flanged shafts. The company’s manufacturing facilities are located in Hoshiarpur and Kapurthala in Punjab.
As of 24 August 2023, GNA Axles Ltd.’s market capitalisation stood at Rs. 2,233 crores. Its shares were trading for Rs. 1027 per share at the NSE and Rs. 1026.45 at the BSE. The company will provide bonus shares in the ratio of 1:1 to its existing shareholders by the record date of 2 September 2023.
Vivanta Industries Limited offers consultancy and project turn-key services for commercial, agro, and pre-fabricated factories. It also provides land acquisition consulting services, including title search and tenancy clearances.
As of 24 August 2023, Vivanta Industries Ltd.’s market capitalisation stood at Rs. 60 crores. It’s one of the best penny stocks you can add to your portfolio at Rs. 6.27 per share. If you buy these shares before the record date of 5 September 2023, you will stand a chance to receive bonus shares in the ratio of 1:4.
JTL Industries Limited is a leading manufacturer of Electric Resistance Welded (ERW) steel pipes and tubes in India. Its products are used for engineering purposes in automobiles and a range of other industries.
As of 24 August 2023, the market capitalization of JTL Industries Ltd. stood at Rs. 3,364 crores. You can purchase its shares for Rs. 369.95 per share at the BSE and Rs. 396.35 at the NSE. The company has announced a 1:1 bonus share for its shareholders with a record date of 7 September 2023.
The Power Grid Corporation of India Limited is a state-owned power transmission company. It is responsible for the bulk transmission of power across different Indian states and real-time inter-state transmission system (ISTS) monitoring.
As of 24 August 2023, the company's market capitalization stood at Rs. 1,74,107 crores. Its shares traded for Rs. 246.30 at the NSE and the BSE. The company has announced a bonus share of 1:3 for its shareholders by the record date of 12 September 2023.
Lancer Container Lines Limited provides logistics and integrated shipping solutions for coastal water transport through container ships. It is operating at more than 86 ports worldwide and 36 Inland Container Depots (ICDs) in India.
The shares of this company are available only at the BSE for Rs. 239.15 per share. You can buy them before the record date of 22 September 2023 to receive bonus shares in the ratio of 2:1.
These are the top upcoming bonus shares in September 2023 to invest your money. But ensure careful evaluation of a company’s financials, growth prospects, and prevailing market conditions before investing in its shares. If you need a Demat account to start your investment journey, you can open it for free with Motilal Oswal.
Related Articles: Best Insurance Stocks in India 2023 | Best Logistics Stocks In India 2023 | How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account