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2 Multibagger Stocks With 1-Yr Return Up To 359% To Issue Bonus Shares In September 2022
Bonus shares increase the number of share held by the investor at no additional cost. Fresh investors can also take position into the scrip for bonus share issue provided he or she has done a thorough check on the company's fundamentals. But to be eligible for the bonus share issue the scrip need to be purchased well before the bonus ex-date and the same should reflect in the demat account of the investor as on the bonus record date. Importantly, while the number of shares increases for the shareholder in a bonus share issue, stock price of the scrip adjusts accordingly and the value of investment in the scrip remains the same.
How does bonus share changes stock price?
This we can illustrate taking into account bonus share issue in some pre-specified ratio say 1:1 or 2:1.
| Bonus share proportion | Number of shares pre-bonus | Stock price before the bonus issue | Value of investment pre-bonus | Number of shares post the bonus issue | Share price post bonus | Value of investment post the bonus issue |
|---|---|---|---|---|---|---|
| 1:1 | 100 | Rs. 75 | Rs. 7500 | 200 | 37.5 | Rs. 7500 |
| 2:1 | 100 | Rs. 75 | Rs. 7500 | 300 | 25 | Rs. 7500 |
When are bonus shares credited into the eligible investor's demat?
As and when investors' eligibility for bonus shares is ascertained, bonus shares are assigned new ISIN or International Securities Identification Number and it takes no longer than 15 days after the ISIN has been given for the demat shares to be credited.
2 Multibagger Stocks to issue bonus shares in September 2022
Jyoti Resins
This is a small cap stock from the chemicals space. The company on May 17, 2022 announced the bonus issue in the ratio of 2:1 i.e. for every 1 share held in the company, investors will be allotted to more shares. The ex-date for the same is September 8, 2022, while the record date is September 9, 2022.
Importantly, this is a multibagger chemicals stock with 1-year returns at a staggering 359%. Also, the company's June quarter results logged over 136% increase in net sales YoY.
Jyoti Resins is an India-based manufacturer of synthetic resin adhesives. The Company manufactures various types of wood working adhesives. Scrip last traded at a price of Rs. 3566.05, locked in 5% upper circuit.
Ruby Mills
This is again a small cap scrip from the textile space. The company announced bonus issue in the ratio of 1:1 in early August. The stock would go ex-bonus on 22nd September, while the eligibility for the bonus share shall be determined taking into account ownership in the scrip as on September 25, being the record date.
Ruby Mills in the last 1-year has fetched over 112% return. Its YTD return is even more attractive at over 120%. Last the stock traded at Rs. 573.5, down by a percentage over the previous close.
Ruby Mills Limited is engaged in textile manufacturing and real estate development.
Disclaimer
The stocks are collated for their likely bonus share issue going forward. Readers should not take the story as an investment advice into the stocks.
