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).
 

According to the bonus number of shares issued in the bonus issue, the stock price will be adjusted. Consider a scenario where a business announced a 4:1 bonus issue. Shares are priced at ₹100 each before bonuses. If there are 100 shares, then (100*100) /400 = ₹ 25 will be the the stock price following the bonus issue.

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.

Sundaram Clayton has given the highest bonus share 116:1 ex-bonus date 24th March, 2023.