Upcoming Bonus Shares

Bonus shares are extra shares that are given to current shareholders at no additional cost based on how many shares they currently own. These are the company's accumulated earnings that are converted into free shares rather than being distributed as dividends.

Existing shareholders receiving additional shares in a specific ratio is known as a bonus issue. If a 4:1 bonus issue is announced, for instance, shareholders will receive four shares for every share they currently own. Therefore, if an investor owns 10 shares of a particular company, they will receive 40 shares in total (4 * 10).
 

Share prices fall after a bonus issue due to a proportional adjustment in value, not because of any loss in fundamentals. Since bonus shares increase the number of outstanding shares without changing the company's overall valuation, the share price is reduced accordingly.

Example: If you own 1 share of a company priced at ₹1,000 and the company issues bonus shares in a 1:1 ratio, you’ll receive 1 additional share.

Now, you have 2 shares, but the market adjusts the price to around ₹500 each, keeping your total investment value the same:
₹1,000 (before) = 1 share × ₹1,000
₹1,000 (after) = 2 shares × ₹500

This price adjustment is automatic and reflects the dilution of value per share, not a drop in company performance.

It is advantageous for the company's long-term shareholders who want to increase their investment. Because the company uses the cash for business growth, bonus shares increase investors' confidence in the company's operations.

The shares are credited in the case of a bonus issue a few days (typically 15 days) after the ex-date. Thus, the investor is unable to sell the share before it is credited to your Demat account because doing so could result in an auction.

Receiving bonus shares is not taxable, but capital gains tax will apply when you sell them. The cost of acquisition for bonus shares is considered zero, and holding period is counted from the date of allotment, affecting short-term or long-term tax classification.

In a bonus issue, new shares are allotted from company reserves, while in a stock split, the face value of existing shares is reduced and the number of shares is increased accordingly. Bonus shares come from retained profits; splits are more of a structural change.

You can track all latest bonus share announcements, record dates, and ex-bonus dates on this 5paisa Bonus Shares page. It’s regularly consistently to help investors stay informed and make timely decisions.

Bonus shares are additional shares issued to existing shareholders free of cost, derived from company reserves. They increase shareholding without fresh investment.

The latest bonus share announcements are available in stock exchange filings and financial platforms. Investors can conveniently view updated lists, ratios, and eligibility details on 5paisa under corporate actions for timely decision-making.

Bonus shares are issued from company profits, giving shareholders extra shares. Stock splits simply divide existing shares into smaller units to increase liquidity. Unlike splits, bonus shares change ownership structure.

The record date confirms eligible shareholders for receiving bonus shares, while the ex-date is when shares trade without entitlement. Investors can check these critical dates via stock exchanges or on 5paisa app.

Bonus shares are tax-free when allotted. However, capital gains tax applies upon selling, calculated on the selling price as the cost of acquisition is considered zero.